{"id":1442751,"date":"2026-01-04T09:42:29","date_gmt":"2026-01-04T08:42:29","guid":{"rendered":"https:\/\/www.payoff.ch\/news\/from-wallflower-to-new-stock-market-star"},"modified":"2026-01-05T07:56:52","modified_gmt":"2026-01-05T06:56:52","slug":"from-wallflower-to-new-stock-market-star","status":"publish","type":"post","link":"https:\/\/www.payoff.ch\/en\/news\/from-wallflower-to-new-stock-market-star","title":{"rendered":"From wallflower to new stock market star"},"content":{"rendered":"\n

Artificial intelligence, cloud computing and big data – the techs have been celebrating a wild price party on the capital markets for years now. In contrast, another promising sector of the future has recently led a shadowy existence: biotechnology. While on the other hand the curves were pointing steeply upwards, the Nasdaq Biotechnology Index stood still between 2002 and the beginning of 2025. But a few months ago, the tide turned: since April, the barometer has risen by a good half. But why is biotech suddenly in such demand again? <\/p>\n\n

\"\"<\/figure>\n\n

Restart<\/h3>\n\n

There are several reasons for the turnaround. Firstly, the downturn of previous years has made biotech shares relatively cheap. For example, the US biomedical and genetics industry is currently trading at an expected P\/E ratio of around 19, compared to 21.5 for the S&P 500. In addition, earnings per share growth of 22.6% is forecast for shares in the biomedical and genetics sector, compared to “only” 14.2% for the S&P 500. At the same time, interest rate trends are playing into companies’ hands. When the US Federal Reserve lowered the key interest rate again for the first time in September, biotechs with their capital-intensive business models breathed a sigh of relief. However, falling key rates not only ensure cheaper loans, they also generally increase investors’ appetite for risk, which benefits high-growth sectors in particular. <\/p>\n\n

Tailwinds are also coming from the regulatory and political side. After a period of uncertainty, the White House sent signals of easing with regard to tariffs and price controls. In addition, the US Food and Drug Administration (FDA) has granted an unusually high number of new approvals this year, which is boosting confidence in the sector. As at the end of October, 33 approvals had already been granted, compared to 50 approvals in 2024 as a whole. The sector is also seeing brisk M&A business and IPOs worth billions. To date, 35 mergers and acquisitions with a total volume of USD 30.8 billion have been completed and, in addition, seven IPOs have been completed in the US since the beginning of the year, raising more than USD 1 billion. The pharmaceutical giants’ bulging coffers could keep the M&A business going. According to calculations by EY, the big players have around USD 1.6 trillion available for potential takeovers. <\/p>\n\n

Heavyweights<\/h3>\n\n

However, consolidation is also underway within the biotech scene: take Amgen, for example, which is one of the veterans of the biotech industry. In 2023, the company acquired Horizon Therapeutics, which specializes in rare autoimmune diseases, for around USD 28 billion, making it the largest acquisition in the company’s history. Amgen thus demonstrated not only its financial strength, but also its determination to secure growth through acquisitions. The sales curve is also pointing upwards: Last year, the Group generated 18% more revenue, and in 2025, revenue could again increase by a double-digit percentage. Analysts even expect earnings per share to increase by almost half. A further improvement of 16% is then on the cards for 2026. <\/p>\n\n

Biogen is also one of the traditional companies in the biotech sector. However, the company has had some difficult years behind it. The company once dominated the market for MS drugs, but then put all its eggs in one basket with an Alzheimer’s drug. This flopped and Biogen’s reputation was tarnished. The tide then turned in 2023: under a new CEO, Biogen realigned its portfolio, developed the antibody lecanemab, also for Alzheimer’s, in collaboration with Japanese partner Eisai, and achieved demonstrable success. The first approved Alzheimer’s drug is expected to generate billions in sales. Biogen is also making acquisitions. The acquisition of Alcyone Therapeutics was completed a few weeks ago. As a result, Biogen has secured all rights to the implantable medical system ThecaFlex DRx. After an expected profit stagnation this year, the curve is expected to point upwards again in 2026. Similar to Amgen, the Group also expects Biogen’s earnings to increase by 17%. <\/p>\n\n

\"\"<\/figure>\n\n

Miracle weapon mRNA<\/h3>\n\n

New technologies such as mRNA and growing pressure to innovate are also driving biotechs. The two Covid-19 specialists BioNTech and Moderna are currently engaged in an exciting race. Both have set themselves the goal of using their now successfully tested mRNA technology in the fight against cancer. The aim is to use personalized vaccines to target the patient’s immune system against tumours. Both the Germans and the US company are currently conducting clinical trials and plan to submit applications for approval before 2030. Moderna recently recorded positive data with its mRNA immunotherapies in skin and lung cancer patients. BioNTech is also making progress in skin cancer and head and neck cancer. In addition, BioNTech has entered into a promising partnership with the UK NHS to accelerate clinical trials on a large scale. However, there is currently no sign of momentum on the stock market, with BioNTech and Moderna shares in consolidation mode. <\/p>\n\n

\"\"<\/figure>\n\n

New medicines<\/h3>\n\n

Ionis Pharmaceuticals, a pioneer in the field of RNA therapies, was recently able to prove in two phaseIII studies that its active ingredient can significantly reduce blood lipids. The company is now planning to apply for approval for the corresponding drug called olezarsen in the USA by the end of the year. Speaking of RNA, Biogen and Novartis are currently investing billions in this area. The Basel-based company has just announced that it will acquire Avidity for USD 12 billion. The RNA company brings with it a pipeline of neuromuscular therapies. The acquisition is expected to be completed in the first half of 2026. Biogen is focusing on inflammation research and immunotherapy with an agreement with Vanqua Bio. The deal is worth up to USD 1.1 billion and is intended to strengthen Biogen’s immunology pipeline. The preclinical C5aR1 antagonist, which inhibits inflammatory reactions via neutrophil cells, is scheduled for IND submission in 2027. <\/p>\n\n

Gilead Sciences recently celebrated a spectacular approval success. In the middle of the year, the FDA gave the green light to the novel HIV prevention therapy lenacapavir. According to experts, the injection, which is marketed under the trade name Yeztugo, has game-changing potential, as the drug has the potential to put a lasting stop to HIV. According to Gilead CEO Daniel O’Day, lenacapavir could “end the HIV epidemic once and for all”. Stock market analysts are already showering advance praise and have catapulted the share price to record highs. Argenx is also chasing the summit. The Belgians have also recently celebrated successes, particularly with their antibody Efgartigimod (Vyvgart). After it showed a breakthrough effect in a rare nerve disease in 2023, approval was granted in the USA last year. In the EU, the subcutaneous injection was given the green light in June 2025. This year alone, the share price rose by around a third. The company is now worth almost EUR 50 billion and in September became the first biotech stock since 2002 to be included in the leading European index EURO STOXX 50. This shows that Argenx, with its focus on rare autoimmune diseases, has risen to become the spearhead of the European biotech scene. <\/p>\n\n

Argenx’s success story is far from over. Even though Vyvgart still accounts for the majority of revenue, studies are currently underway for numerous other indications. Some results are expected as early as the first half of 2026. According to Argenx, the company is thus preparing for further market approvals. By the end of the decade, the Belgians would like to obtain approvals for ten areas of application and then treat a total of 50,000 patients with their products. <\/p>\n\n

\"\"<\/figure>\n\n

Switzerland plays with<\/h3>\n\n

Switzerland also has a lively biotech scene. The Alpine country is not only home to pharmaceutical giants Novartis and Roche, but is also home to numerous small, innovative healthcare companies. In 2024 alone, the domestic biotech sector generated sales of around CHF 7.2 billion, remaining almost stable compared to the record level of the previous year in a difficult environment. Away from the pharmaceutical multinationals, Molecular Partners, for example, has made a name for itself. It wants to fight tumor cells with artificial protein modules. Even though the company does not yet have its own products on the market, the unique DARPin platform and partnerships with Novartis and Amgen make Molecular Partners an exciting technology carrier. As the company is still operating deep in the red with no rapid prospect of improvement, the stock market is currently rather cautious. <\/p>\n\n

Sentiment on the capital market towards Idorsia was also tarnished after the end of the coronavirus pandemic. However, this brightened considerably in the middle of the year. The company is a spin-off from Actelion, which already has a product on the market in the form of Quviviq, a sleeping pill for insomnia. The company aims to generate sales of around CHF 130 million this year. Idorsia recently launched a second drug on the market, Pivlaz, for the treatment of cerebral vascular spasms, but sales to date have been modest. With a recent financing round, however, the company has now provided the necessary stability to further advance its product pipeline. <\/p>\n\n

\"\"<\/figure>\n\n

Although Newron Pharamceutical is not a Swiss company and is headquartered in Italy, the company chose SIX when it went public almost 20 years ago. The company focuses on the central nervous system and launched a Parkinson’s drug on the market in 2015. Newron currently has high hopes for Evenamide, a novel add-on drug for treatment-resistant schizophrenia. When it comes to treatment resistance, the name BioVersys also crops up. The company, which went public at the beginning of this year, is developing innovative active substances against multi-resistant bacteria, including tuberculosis pathogens and hospital germs. If the Basel-based company is successful, it will not only generate a financial return, but would also be a huge success in terms of health policy, as drugs against resistant germs are urgently needed worldwide. However, BioVersys still needs to build up confidence on the stock market: The share is trading well below the issue price. The situation is different for Newrond: the share price has almost doubled this year alone. <\/p>\n\n

\"\"<\/figure>\n\n

In view of the renaissance of biotechnology, many investors are wondering what prospects the sector offers. The opportunities and risks go hand in hand. First the opportunities: according to estimates, the biotech market could reach a volume of almost USD 4 trillion by 2030. The drivers for this are clear: demographic change and medical advances are creating a long-term need for new therapies. Companies that achieve a medical breakthrough stand to make huge profits. Added to this is the takeover fantasy. <\/p>\n\n

\"\"<\/figure>\n\n

However, the positive prospects are inextricably linked to considerable risks. If a drug fails, this can lead to drastic share price losses. External factors such as a change in healthcare and pricing policy can also torpedo business models. For investors, this means choosing carefully, keeping your nerve, remaining realistic and reducing cluster risk. The domestic investment company BB Biotech, for example, offers a broadly diversified approach to the sector. The company focuses on companies that concentrate on the development and marketing of novel drugs with clear added value for the healthcare system. BB Biotech is particularly interested in profitable companies with strong pipelines in the small and mid-cap sector. In addition to an attractive dividend yield, the share is also favorably valued. The share is currently trading at more than a tenth below its NAV. <\/p>\n\n

\"\"<\/figure>\n\n

However, there are many other investment opportunities in the sector besides BB Biotech. In the table below, we have compiled a large number of products that are suitable for investing in the sector, depending on your personal risk tolerance. <\/p>\n\n

\"\"<\/figure>\n","protected":false},"excerpt":{"rendered":"

The combination of lower valuations, technological innovations and entrepreneurial success is currently making biotech companies attractive. In addition, there is a great deal of takeover fantasy in this sector. This promising constellation can result in interesting opportunities for investors. <\/p>\n","protected":false},"author":4,"featured_media":1442670,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ngg_post_thumbnail":0,"footnotes":""},"categories":[225],"tags":[],"class_list":["post-1442751","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-focus-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/posts\/1442751","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/comments?post=1442751"}],"version-history":[{"count":1,"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/posts\/1442751\/revisions"}],"predecessor-version":[{"id":1442752,"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/posts\/1442751\/revisions\/1442752"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/media\/1442670"}],"wp:attachment":[{"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/media?parent=1442751"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/categories?post=1442751"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/tags?post=1442751"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}