Health-care companies fell slightly as traders gravitated towards defensive sectors to start the year.
"Biotech tends to outperform significantly as rates stabilize, which could clearly happen in 2023," said analysts at brokerage Morgan Stanley, in a note to clients.
Drug prices could be lifted by inflation, and a 2022 down-tick in Food and Drug Administration approvals could reverse itself in 2023, the analysts said.
The FDA is expected to make a decision on whether to approve Biogen and Eisai's Alzheimer's disease medication the week following controversy over its approval of a rival product.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-03-23 1700ET
