The biotechnology sector, represented by the SPDR S&P Biotech ETF ($XBI), is showing signs of recovery, recently trading above the $100 mark. Analysts note that the sector has experienced a prolonged period of reduced investment, often referred to as a 'biotech winter,' which has lasted over three years. As of the first half of 2024, the restructuring within biopharma mirrors trends from the previous year, with average runways for investments extending from approximately six to seven quarters. Additionally, larger pharmaceutical companies are shifting towards smaller deals compared to previous years. On August 19, 2024, $XBI gained 2.2%, while individual stocks like $TGTX and $VKTX rose by 13% and 11%, respectively. Market indicators such as the MACD and RSI suggest potential for further gains in the sector, with expectations for a stronger performance in the fourth quarter as rate cuts could positively impact small-cap biotech stocks.