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As COVID wreaked havoc on our markets, biotech appeared to be an outlier, not just weathering the storm but emerging stronger than ever with record investments and valuations. Then reality struck. Assets lingered in the early stages. Commercialized products underperformed. Valuations tumbled. Now, a new normal has arrived, presenting a biotech investment paradox to small and midsize companies — how to deliver promising innovations and low-risk investment options to an increasingly wary market.Even before the pandemic, small to midsize biotechs were gaining ground, thanks in part to their nimbler adoption of new technologies, faster-paced innovation and partnerships with larger companies hoping to overcome internal stagnation and offset impending patent expirations.
EY reports that new molecular entity (NME) approvals attributed to small biotechs with revenues less than $1 b…