Investing in the Future: Cytokinetics and Viking Therapeutics Offer Promising Growth Opportunities
Biotech Opportunities
These two biotech stocks could be big winners in the years ahead. Biotech stocks are susceptible to changes in interest rates, primarily due to the high costs associated with product development.
Financing Strategies
To manage these substantial costs, biotech companies often turn to loans as a crucial part of their financing strategy.
However, the interest on these loans can eat into future free cash flows, making their stocks especially vulnerable to higher rates.
Market Catalyst
Although it's unclear when the Federal Reserve will pivot on interest rates, most experts anticipate that the central bank will start to reduce rates at some point in 2024. This event could act as a significant catalyst for biotech equities at large.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.