Nightly Business Report, 12/5/2000 21:53
Dresdner RCM Biotechnology Exhibits Earnings Chemistry
PAUL KANGAS: While it hasn't been a great year for most mutual fund sectors, one exception is biotechnology funds. And within
that group, one of the hottest funds is Dresdner RCM Biotechnology, with a return of nearly 65 percent since the start of the year.
Besides its record, another factor that makes this fund stand out is the fact that it's managed by a team of three medical doctors.
And one of them, Dr. Camilo Martinez, joins us now from San Francisco. Doctor, welcome to NIGHTLY BUSINESS REPORT.
DR. CARMILO MARTINEZ, DRESDNER RCM BIOTECHNOLOGY FUND: Thank you, Paul. KANGAS: First, do you think your
medical background has enabled your group to do better at stock picking than other biotech fund managers?
MARTINEZ: I think it has. I think by nature biotechnology companies are very complex from both a scientific and a medical basis and
our team's background is in science and it gives us an edge at looking at the fundamentals of these companies.
KANGAS: Of course, there are many different subspecialties within biotech. For example, earlier this year genomics was the big
winner. Is there is one area which you believe to have the best potential right now?
MARTINEZ: I think the area is basically therapeutics, biotherapeutics and genomic companies are also set up to assist in the
development of therapeutics. So companies which either directly or indirectly advance products through the pipeline and into the
market, I think, stand a good chance of being successful.
KANGAS: Give us an idea of a typical therapeutic product that you might be familiar with?
MARTINEZ: For example, one is a new product that's coming out by a company that we like a lot called Amgen (NASDAQ:AMGN).
And it's a product called Aranesp and it's an extended version, extended release version of their product, Epogen. We think this
product will give them a marketing advantage over existing products and allow them to enter new markets which they currently are
prevented from entering.
KANGAS: I take it Amgen is one of the stocks in your portfolio and, if so, say yes. Yes?
MARTINEZ: Yes.
KANGAS: And how about others that you like right here?
MARTINEZ: Amgen, as I mentioned, is one of our favorite large cap stocks. Some small cap stocks which I think are very interesting
after the recent pullback we've seen in biotechnology are, for example, one we like is Praecis (NASDAQ:PRCS), which has a product
partner with Amgen. I think they have a good technology platform to develop new drugs.
KANGAS: Can you spell that? What is it?
MARTINEZ: Praecis. The ticker is PRCS.
KANGAS: OK. Praecis. All right. Very good. Well, now the momentum in biotech stocks has slowed a little bit lately and do you
think the sector is about to give back a large part of its gains or do you see this as just a brief lull before biotech takes off again?
MARTINEZ: Well, I think your concern is warranted. I think it reflects more the market in general rather than the fundamentals of the
group. I think with the problems that we've seen in the economy and certainly the election and the problems of technology, portfolio
managers and investors have become a little bit more violation sensitive, so they've been wanting to take their, capture their gains
right now.
KANGAS: OK. All right. Give us one other favorite. We have 15 seconds.
MARTINEZ: OK, another company I like a lot is 3D-P, 3D Pharmaceuticals, the ticker is DDDP.
KANGAS: All right. We've got it. Thank you, Dr. Martinez. MARTINEZ: OK. You're welcome.
KANGAS: My guest, Dr. Camilo Martinez of Dresdner RCM Biotechnology Fund. |
