Stunning Biotech Developments or Stunned Biotech Investors?
BusinessWire, Tuesday, March 10, 1998 at 21:34
SAN FRANCISCO--(BUSINESS WIRE)--March 10, 1998--Many
biotechnology investors have been stunned more by the absence of
profits in their investments than by medical progress in the sector,
so finding the gems requires more knowledge than ever.
According to Investor's Business Daily's rankings, the sector has
hovered in mediocrity for better than a year. Last week the group of
178 stocks sat at 77th among 197 industry groups and this week slipped
to 95th. Six months ago the group ranked 109th.
By contrast, the drug group with Merck (NYSE:MRK), Warner-Lambert
(NYSE:WLA), Abbott Laboratories (NYSE:ABT), Schering-Plough (NYSE:SGP)
and Pfizer (NYSE:PFE) -- which many times drive development at
biotechnology firms -- has soared 18.5% since January.
Why the disparity? Fund manager Mike Yellen of GT Global
Healthcare Funds blames the lack of quality stocks in the
biotechnology group. "There are too many companies without real
products and real opportunities that have been taken public by Wall
Street over the past couple years," he says.
Finding the good ones -- or firms that might be absorbed -- is
tricky. "We think the sector will continue to see consolidation along
the lines of Arris Pharmaceuticals (NASDAQ:AXYS) and Sequana," said
Tim Quast, chief operating officer of Informed Investors.
"Opportunities for deals with major drug companies are thinning, and
that means firms must combine forces or change their business plans
like Cypros (AMEX:CYP) and Genta (NASDAQ:GNTA) have done to finance
drug-development in-house."
Cypros and Genta are among the biotech companies presenting on
March 14 at the 2nd San Diego Informed Investors Biotech Forum. The
conference runs from 8am-12:45pm at the Mission Valley Radisson. Also
presenting are Trega Biosciences (NASDAQ:TRGA) and Aurora Biosciences
(NASDAQ:ABSC), which among them have leveraged combinatorial chemistry
libraries into agreements with Warner-Lambert, Eli Lilly (NYSE:LLY),
Bristol-Myers Squibb (NYSE:BMY) and others. Vical (NASDAQ:VICL),
sporting a full product pipeline, balance sheet brimming with cash and
partnerships with Merck, PMC and Rhone-Poulenc SA (NYSE:RP) division
Rhone Merieux also will present. The conference is keynoted by top
biotech expert Michael Murphy of the California Technology Stock
Letter (www.ctsl.com).
On March 15, senior healthcare analyst David Crossen, Ph.D. of
Nationsbanc Montgomery Securities keynotes the 4th Informed Investors
Bay Area Biotech Forum in Emeryville near San Francisco. Presenting
companies include Gilead Sciences (NASDAQ:GILD), which is researching
an oral treatment for the flu, and Myriad Genetics (NASDAQ:MYGN) which
today announced along with Novartis (NASDAQ:NVTSY) the discovery of a
gene that may help companies develop effective treatments for heart
disease.
Also presenting are anti-aging researcher Geron Corp.
(NASDAQ:GERN), partnered with Pharmacia & Upjohn, (NYSE:PNU). and
Shaman Pharmaceuticals (NASDAQ:SHMN), working with a division of Merck
and others. XOMA Corp. (NASDAQ:XOMA) with a lead compound in Phase III
trials rounds out the group.
The March 15 Forum is at the Bay Bridge Holiday Inn from
8am-12:45pm. Call Informed Investors (www.informedinvestors.com) at
800/992-4683 for details on both Forums. Cost to attend either Forum
is $15 in advance or $20 at the door. Sets of audiocassettes are $25
per Forum or $45 for both, plus $3.95 shipping and handling.
"Just as the Cowen Healthcare conference this week in Boston and
other institutional events are essential for many analysts and
portfolio managers, these Forums are a must for serious biotech
investors," said Steve Chanecka, President of Informed Investors.
Informed Investors has featured scores of quality companies and
industry experts at its Forums since 1993 and represents individual
investors who collectively hold an estimated $1.5 billion in
investable assets.
CONTACT: Informed Investors
Bob Taylor/Tim Quast, 916/448-8222
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: MEDICINE BIOTECHNOLOGY BANKING
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Companies or Securities discussed in this article:
Symbol Name
NYSE:PFE Pfizer Inc
NASDAQ:AXYS Axsys Technologies Inc
NASDAQ:GNTA Genta Inc
AMEX:CYP Cypros Pharmaceutical Corp
NASDAQ:TRGA Trega Biosciences Inc
NASDAQ:ABSC
NYSE:LLY Lilly Eli & Co
NYSE:BMY Bristol Myers Squibb Co
NASDAQ:VICL Vical Inc
NYSE:RP Rhone Poulenc S A
NASDAQ:GILD Gilead Sciences
NASDAQ:MYGN Myriad Genetics Inc
BB:NVTSY Novartis A G ADR
NYSE:PNU Pharmacia & Upjohn Inc
NASDAQ:GERN Geron Corp
NASDAQ:SHMN Shaman Pharmaceuticals Inc
NASDAQ:XOMA Xoma Corp
NYSE:MRK Merck & Co Inc
NYSE:WLA Warner Lambert Co
NYSE:ABT Abbott Labs
NYSE:SGP Schering Plough Corp |
