When a small biotech company acquires a failed drug from big pharma and plans to repeat the clinical studies expecting a positive result, is that not a definition of insanity?

Apart from assuming that its new drug will always be a blockbuster, the other common mistake made by biotech companies and investors is that there will invariably be a viable market for its drug. The competition will have other ideas.

Unlike big pharma, some small commercial companies cut sales and marketing costs in 2021. But with a little imagination, it could go further.

While the stock prices of a few biotech companies have advanced significantly as a result of their pandemic efforts, a broad biotech stock index has underperformed the pharmaceutical index. Why?