Biotech Resurgence: Navigating Market Challenges and Opportunities in 2026

stocks are defying the broader markets slump and several key benchmarks are heading into today's trading session, up more than 5.5% for the year.

While among the key drivers of these gains include M&A activity as big pharma companies acquire small biotechs with late stage drug candidates, the massive success of weight loss drugs, and even the more stable interest rate environment as the industry has returned to.

It's fundamentals of innovation and clinical success biotechs are seeing a resurgence following a few years of volatility.

Well joining me here at the New York Stock Exchange is Dr.

Raza Bokhari, Executive Chairman and CEO of Medicus Pharma.

Great to have you here.

Thank you so much for joining me.

Thank you so much for having me this morning.

Well, 2026 has been quite the volatile year, but when we take a look at the space, we are seeing the research.

And in outperformance compared to the S&P 500.

So tell us what's happening.

Well, indeed, the biotech sector, like all the sectors, go through its cycles, and after 2021 there has been what would be called the nuclear winter of biotech, but now we think like the clouds are shedding, the spring is around the corner.

But nonetheless, microcap biotech still has challenges, but the best usually rises to the top.

So we are certainly striving for that.

Yes, and I do want to hear about the fundamentals that are affecting the sectors.

So you said we are going through a cycle right now.

So how do interest rates as well as monetary policy actually affect R&D and investment?

They have a direct impact on access to capital, so companies like ours that have a good trading volume and liquidity, they continue to access capital.

I believe that is the key, but nonetheless there is Access to capital, it's sometimes a little expensive, could be cost prohibitive, but nonetheless, you have to keep on moving forward through these peaks and valleys and continue to deliver and execute.

So there are always big challenges also create big opportunities.

Yes, and I do want to get your take on the role of geopolitics as well as tariffs when it comes to this sector.

What are we seeing unfolding right now?

So all startups are global startups.

There is an integration in especially in research and development, the clinical trials, cross-border participation is very important and geopolitical turmoil.

Has its direct impact in terms of things just slow down.

We're still early in the cycle.

Hopefully there could be quick resolution and things could get back on track, but nonetheless, the biotech sector also is resilient.

And the outlook remains promising with these little big bump on the road.

Yeah, and I do want to get your sector on your take on what we're seeing in terms of market cap sectors.

So what are the differences and why is this performance happening right now?

So in public issuer.

Pre-revenue companies like ours, the stock valuations usually remain depressed.

There is a resurgence of interest since we have entered into 2026, so there is an overall positive attitude.

Big Pharma is being optimizing themselves for late stage development and commercialization.

The balance sheet of these companies are quite rich.

There is a lot of cash available, so that creates an opportunity for it to move downstream to get deployed, create opportunities for smaller companies like ours which are an emerging growth company.

So there is an opportunity that is emerging.

I think in a steady fashion where we are striding forward with a forward momentum, so we feel rather positive about that.

And before I let you go, we have less than 60 seconds here.

So tell us about the role of the pharmaceutical industry facing a patent cliff.

What does this mean for the industry?

It probably needs more than 60 seconds to describe.

It's these patents come to expire.

The drug development is an expensive business.

It costs over a billion dollars or so, so there is always an effort to how these patterns could be extended.

And there are a lot of patent drugs that are coming off patents, but that also creates opportunity for emerging companies like ours that could actually bring novel therapies the way we have for skin cancer.

And for prostate cancer and women's health.

So, so novel therapies get a chance to emerge.

So, thank you so much for joining us and weighing in today.

I appreciate your time as well as your perspective.

Thank you so much for having me on your program.

Thank you.