Investor enthusiasm for biotechnology stocks is running hot. That could be a sign that the sector’s spring rally will soon wind down. A broad index of small and medium biotech stocks is just off record highs and has surged about 60% from the lows in March. The new reality of Covid-19, the disease caused by the coronavirus, has meant renewed interest in the sector, as some investors bet that the successful developer of a treatment or vaccine could eventually make huge profits. The outbreak has also meant fresh government funding...

Source: Wall Street Journal May 21, 2020 11:02 UTC