The biotechnology sector harnesses biological processes to create technologies and products for a wide variety of challenges, from expanding crop sizes to treating disease. Politics was a major contributor, analysts say, as drug prices became a punching bag in the presidential campaign. Politics may have played a role in the biotech rebound in other ways, says Matt Bartolini, head of SPDR Americas research at State Street Global Advisors, which runs SPDR S&P Biotech ETF (XBI), a $2.95 billion fund with a year-to-date gain of 14.47% through May. Biotech risksStill, the biotech sector has a number of vulnerabilities that investors need to keep in mind, analysts say. Some of the biotech sector’s products are aimed at the biggest challenges in society, from expanding food supplies to tackling the health problems of aging populations.

Source: Wall Street Journal June 05, 2017 02:09 UTC