Investments in the Biotechnology Sector

October 30, 2025

Mish's Daily

By Mish Schneider

While many investors focus on semiconductors and AI or the growth sector, one of my Economic Economic Modern Family members has been busy.

IBB the ETF for Biotech, has made new multi-year highs.

We cannot say new all-time highs as that was made in 2021 during Covid.

However, we can discount that unusual time and safely say IBB is on a tear and could very well continue.

The Biotech sector is both a cyclical and non-cyclical sector.

Biotechnology is a diverse field that creates products and technologies for a wide range of applications.

The industry is often categorized by sectors, which are sometimes referred to by color codes.

Red biotechnology: Medical and pharmaceutical

Focused on developing new therapies and diagnostic tools to improve human health. Eli Lilly (LLY) and AbbVie (ABBV) are 2 top companies in that space. ABBV is also heavily investing in AI to enhance their R&D and manufacturing processes.

White biotechnology: Industrial

Also known as industrial biotechnology, this sector focuses on using biological systems to create new products and improve manufacturing processes to be more efficient and sustainable, such as biofuels.

Valero Energy (VLO) is a leader in biofuel space.

The weekly chart of IBB shows a massive double bottom made in April 2022 and April 2025.

Essentially, IBB can run to 190 as a reasonable target over time.

We are also interested in promising and rapidly evolving areas in biotechnology that include advanced gene editing, synthetic biology, AI-powered drug discovery, next-generation therapeutics, and nanobiotechnology. Crisper CRSP is one, and Recursion Pharma RXRX another.

Moderna (MrNA) a covid darling made a huge move today.

Let’s have a look at both Moderna and another biotech stock Pfizer.

In late September 2025, Pfizer reached a landmark agreement with the Trump administration aimed at lowering prescription drug costs.

The deal was a voluntary response to the administration's push for a "Most-Favored-Nation" (MFN) pricing model, which seeks to align U.S. drug costs with the lowest prices paid in other wealthy nations.

Also in September, Pfizer announced its acquisition of Metsera, a clinical-stage biopharmaceutical company focused on next-generation obesity and cardiometabolic treatments.

This move came after a bidding war with Novo Nordisk. 

No wonder I am interested in this company and the stock.

Let’s go to the chart.

The recent spike you see on the Daily chart is post the announcement with Trump and the acquisition.

However, PFE could not hold the gains.

PFE gets interesting over $25 with a tight risk parameter.

mRNA therapeutics: Building on the success of COVID-19 vaccines, mRNA technology is being developed for a much wider range of applications, including personalized cancer vaccines and therapies for autoimmune diseases.

Moderna rose 17% after a report that it has held talks with at least one large drugmaker on a deal of "significant scope," according to a STAT News report.

This has not been verified.

Nonetheless, earnings will be released on November 6th.

Right now, the chart looks very interesting.

Of course, a lot depends on whether Moderna is bought out.

Looking strictly at the technical analysis, today’s rally stopped right at the 200-DMA (green line). So that must clear.

Over $30 this can easily go to $35 or higher. It must hold $24.

The bigger point is that there are many stocks that stretch across the biotech sector, and many are undervalued right now.

While the sector itself looks explosive.

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