Though Christmas is right around the corner, the long biotech winter may soon be over.
The Federal Reserve announced Wednesday it plans to cut interest rates three times next year, setting the stage for the first cuts since it began raising rates in early 2022 and opening the door for biotech’s long-awaited comeback.
Years of high interest rates have been a significant obstacle to raising money and closing IPOs since the pandemic boom cooled down in early 2022. The Fed’s announcement brought a level of optimism unseen since then to a sector beset by layoffs and falling valuations.
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