Biotech M&A Is Back—and So Are Biotech Stocks

Biotech M&A is back in a big way—and biotech stocks are benefiting from it. The equal-weighted which trades under the ticker symbol XBI, has gained 5.6% so far this year, while the market capitalization-weighted which trades as IBB, has risen 1.9%. Many biotech stocks, particularly small ones, are reliant on borrowed capital to conduct research as they look for the next big blockbuster drug.