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Investor optimism in biotech stocks is evidenced by the iShares Nasdaq Biotechnology ETF’s (IBB) 6.1% gains over the past month versus the benchmark S&P 500’s 3.6% returns.
While many large-cap biotech stocks are trading at expensive valuations now and could witness a price pullback in the near term, the industry’s solid growth prospects and the ongoinglow-interest-rate environment should drive the performances of small-cap stocks Vanda Pharmaceuticals Inc. (VNDA), Anika Therapeutics , Inc. (NASDAQ:ANIK), Tarsus Pharmaceuticals, Inc. (TARS), BioDelivery Sciences International, Inc. (BDSI), and Champions Oncology, Inc. (CSBR). We think these companies’ impressive product portfolios and strong balance sheets make their stocks worth betting on now.
