This doesn't work the way you imagine.

Suppose the ROI of biotech becomes more competitive compared to alternatives, because there's an ongoing series of technological breakthroughs.

The return on investing goes up (by assumption) and this means interest rates go up (by definition; they are the return on investing).

Is this bad for biotech? Does it shift capital out of biotech? Obviously not.

You're using "high interest rate" to mean "biotech has great returns right now".

Everyone else is using it to mean "the Federal Reserve has set the interest rate high right now"

Very different situations.