It's a booming bull market that few people are talking about...
Over the past few years, a lot of investors have written off biotech stocks.
You see, during the pandemic, most healthcare companies dropped what they were doing to focus on fighting the virus. Investment dollars flowed in, and sales for many biotech and pharmaceutical companies spiked.
But COVID-19 was a once-in-a-century event... And as the world recovered, sales returned to lower, pre-pandemic levels. Many investors fled as a result.
It has taken years for money to flow back into healthcare stocks, but that's what we're now starting to see.
Just look at the State Street SPDR S&P Biotech Fund (XBI). It's up 122% from its 2025 lows...
In general, the biotech industry grapples with a few different questions on a day-to-day basis.
Questions like, "Why does one person get sick while another stays healthy? What changes inside a cell when disease takes hold? And can we stop a disease without causing harm elsewhere?"
Answering these questions is how we get new drugs. And the companies that come up with the answers (and new drugs) reap the rewards.
This is why biopharmaceutical companies spend so much on research. The global total came in at $199 billion on drug development in 2025. And while this covers a broader group than biotech alone, it shows how much cash goes into the search for new medicines.
A lot of that work begins at smaller firms that need outside investors to fund their research. Throughout the first nine months of 2026, biopharma companies raised $23.9 billion in venture funding, according to investment bank J.P. Morgan. Another 22 companies went public, raising $7.5 billion.
Those stock offerings alone surpassed the full-year totals for every year from 2022 through 2025, both in dollars raised and the number of companies going public. Take a look...
All of this proves that money is flowing back into biotech. Investors are showing a renewed appetite to fund the next wave of treatments after the post-COVID-19 biotech bear market.
Funding matters because biotech companies spend years developing drugs before they start selling them. In other words, these early-stage companies burn cash – a lot of it – to bring experimental ideas to fruition.
Funding for early-stage biotech firms helps develop a pool of new drugs... which is where larger, established companies come in.
Larger firms have to keep searching for new drugs to replace existing ones that lose exclusivity.
Drug patents generally last 20 years from the filing date. But years of testing and regulatory review can use up a good chunk of that time before sales start. Once protections expire, generics or biosimilars (generic biologic drugs) can enter, which hurts the original drug's sales and can push down its price.
To put this into perspective, patent expirations will erase nearly $200 billion in branded drug sales over the next four years.
This is why large drugmakers often buy up or license drugs from smaller biotech firms.
For example, AbbVie (ABBV) agreed to buy Apogee Therapeutics earlier this year for $10.9 billion.
Apogee's most important asset is zumilokibart, an experimental antibody designed to treat atopic dermatitis, commonly known as eczema.
This is a huge market. Millions of Americans suffer from moderate-to-severe eczema, and existing treatments don't work well enough for everyone. This acquisition gives AbbVie something every major pharmaceutical company desperately wants... a new generation of potential blockbuster drugs to offset the eventual decline of its existing products and extend its growth runway.
Put simply, money is flowing into biotech. We don't think this bull market is anywhere close to over.
This is especially true now that AI is driving drug development and bringing drugs to market faster.
Still, AI needs high-quality data to work. That leads me to a rare opportunity that's appearing today...
The White House has announced what could be its most ambitious project of the past 60 years – the "Genesis Mission." The goal of this project is to accelerate scientific discovery through AI.
Now, I believe it could send money flowing into one particular overlooked corner of healthcare.
As far as I'm aware, very few people have connected the dots on this yet. But the clues are out there, hiding in plain sight.
To learn more from me about this opportunity – and how you could use it to double your money over the next two to three years – click here.
What We're Reading...
- Something different: The AI "credit card" is getting costlier as CoreWeave (CRWV) bond yield tops 16%.
Here's to our health, wealth, and a great retirement,
Dr. David Eifrig and the Health & Wealth Bulletin Research Team
November 11, 2026