Biotech Tourists Drive Short-Lived Rallies in Covid-19 Stocks
- Moderna, Gilead virus-inspired gains fade after time
- Sorrento doubling market cap based on ‘all hype’ investor says
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The search for a Covid-19 cure and an end to global shutdowns has created a new type of investor in health-care stocks: the biotech tourist.
They’re generalists who are “throwing money at headlines” about any Covid-19-tied companies that are generating “pockets of froth,” according to Brad Loncar, chief executive officer of Loncar Investments. Goldman Sachs analyst Asad Haider also pointed out concerns arising from mom and pop investors jumping into and then quickly exiting vaccine and drug developers on any sign of progress.