FOLLOWING A STRONG 2019, THE bIOTECH SECTOR TURNED IN ANOTHER YEAR OF ABSOLUTE GAINS (nbi +29$, flbi +55$, s&P500 +15$). iNDEED, THE BIOTECH OUTPERFORMANCE WAS DRIVEN BY smID-CAP INCLUDING MRNA’s +629% rise on the back of a successful COVID-19 VACCINE, POSITIVE DATA FROM INNOVATIVE THERAPIES ACROSS A BROAD SET OF INDICATIONS AND ACCELERATED m&a INCLUDING alfln, immU, mffioK, Ftffs, Prffl. PHARMA BENEFITTED FROM RECEDING CONCERNS OVER DRUG PRICING, continuation of strong launches (ABBV’s Skyrizi AND rINVOQ), HIGH-profile clinical wins (LLY’s tirzepatide in diabetes and Verzenio in adjuvant breast cancer, and BMY’s Tyk2 in RA) – BUT HAD A WIDE DISPERSION OF RETURNS(llffi: +30$; mrK: -13$), AND UNDERPERFORMED THE BROADER MARKET ON THE WHOLE (drG +5$). rEGULATORY ENVIRONMENT CONTINUED TO BE POSITIVE WITH 50 APPROVALS IN 2020 AFTER 48 IN 2019.