2) Spending on RD in the past decade are becoming fruitful; a numbers of breakthrough bring in promising candidate and promising stocks. When looking at clinical trials gov, use “cancer” as subject, it turned out that only 1974 clinical trials (US) during 1991-2000, and a huge jump to 11652 trials during 2001-2010.
3)Currently basic research results can be quickly translated into therapeutical product candidate. Historical bubble such as genome era companies in 2002 or stem cell companies in 2008-9 already burst because no commercial products were developed.
4)Still the momentum is going on. 2015 Q1 biotech IPO reached 1.7 bn, although less than 2bn from 2014 Q4, and the trend will continue unless the market put a hard brake
5) The improvement of current therapies supports revenue growth year by year. Think about how many people now taking HIV drugs for the rest of their life !