$HENGRUI PHARMA(01276.HK) basically didn't move, $Pfizer(PFE.US) rose slightly. In a volatile market, large pharmaceutical companies maintain this kind of steady state. $TRANSTHERA-B(02617.HK) however fell six points. Small biotech companies in the clinical stage are experiencing a pullback against the sector trend. Both are in the pharmaceutical business, but large companies are supported by stable cash flow, while small-cap stocks can only be tossed around by risk appetite.
Faced with this divergence, should one stick to the certainty of large pharmaceutical companies or take advantage of the pullback to position in small biotechs with clinical catalysts? The answer is more likely the former—before clear data milestones, the downside for small biotechs is often larger than imagined.
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