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Stock impact report

Is Roivant Sciences (ROIV) the Best Mid Cap Biotech Stock to Buy? [Yahoo! Finance]

Roivant Sciences Ltd. (ROIV) 
Company Research Source: Yahoo! Finance
On March 6, Jared Holz, Mizuho health care equity strategist, appeared on CNBC's ‘Power Lunch' to discuss investing in biotech and the oversaturation in the sector. He said that looking at the denominator of biotech stocks in the public market, we're standing at the 700-800 range, depending upon the day. Almost a quarter of these have enterprise values in negative territory. That basically means that investors and companies, in some respects, have exhausted options. For any value to be created, it is necessary to shift focus and devise another plan of attack through an asset they don't currently own, and resuscitate the company. In some respects, investors and analysts are always looking for a clear pathway for biotech as a sector to perform better. However, Holz said we are in a tough place if a quarter of the index is filled with companies with more cash than the market cap. That is why he suggested, which some people consider somewhat hyperbolic, getting rid of the tail here, as Show less Read more
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