Cowen & Company analyst Eric Schmidt told CNBC on Wednesday that there had been "some froth" and possible over-extension in the biotech industry.
The comments came after a recent sell-off in biotech stocks.
Schmidt noted, however, that there was a "rising tide" in the industry with companies that have earnings, "rational fundamental metrics," and reasonable P/E multiples.
The analyst indicated that great scientific progress was being made in the industry.
The iShares NASDAQ Biotechnology Index (ETF) IBB closed at $340.08 Wednesday, down 0.98 percent.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
