The efficient market hypothesis really doesn't work well with...

The efficient market hypothesis really doesn't work well with speculative biotechs as there are very few market participants with the expertise and capital to exploit market mis-pricings. I have met very few scientists with enough spare money to even invest in an index fund, let alone a speculative small cap biotech. Most scientists are struggling to feed their families - 10 years ago I was exactly in this position as an academic with a mortgage, a wife and three kids, and no significant savings outside of my super. I was not looking for mis-priced biotechs to invest in as I had nothing to invest.

Without enough "smart" money buying and selling then biotechs can, and very often do, get detached from the fundamentals. In the short term price is driven by things like investor sentiment and charts, but in the long term it is the fundamentals that matter. If you are a fundamentals investor then there are lots of good opportunities around in biotech that make the research effort of finding them worthwhile.