The author basically argues that low interest rates and QE have bouyed investment opportunities across the board, independent of fundamentals. The same thing we’re seeing in social media, we are seeing in biotech – and even more so because, ove rhte past 15 years, investors have generally lost money in biotech. This argument makes a lot of sense, given the scant number of drugs and therapies that have been developed in the recent past despite rapid scientific progress.
Perhaps the drying up of investor funding will start to move bioscience away from the endless mouse models and the probing only of proteins we know how to probe. Maybe even pharma would increase R and D spending, if biotech turns out to be a flash in the pan?