Press Release
SOURCE: Massachusetts Biotechnology Council
Market Value of New England-Based Biotechnology Industry More Than Doubles in Past 12 Months
-- Biotech Industry 'Renaissance' Spurs Investors --
CAMBRIDGE, Mass., Oct. 15 /PRNewswire/ -- Over the 12 months from September 1998 to September 1999, the market capitalization of publicly traded New England biotechnology companies more than doubled from $13 billion to $29 billion. This increase has been driven by renewed investor interest in the sector, the commercial success of new products to treat asthma and multiple sclerosis, the advancement of drug discovery research and several promising products for cancer and infectious diseases. More than 60 private and public biotech companies, including industry leaders Biogen, Inc. (Nasdaq: BGEN - news), Genzyme Corporation (Nasdaq: GENZ - news), Millennium Pharmaceuticals, Inc. (Nasdaq: MLNM - news) and Sepracor Inc. (Nasdaq: SEPR - news) will showcase their recent advances and product pipelines at a first-of-its-kind investor conference next week, entitled Mass Opportunities: A Biotechnology Investment Conference, hosted by the Massachusetts Biotechnology Council.
``There is obviously a Renaissance underway in the biotechnology industry, in which Boston is playing the role of the city of Florence,' said Marcia A. Kean, Executive Vice President of Feinstein Kean Partners. ``The elements needed to fuel the industry's future gains are all located in the Boston area: the scientific leadership of Harvard, MIT, the University of Massachusetts, Boston University and Boston College; the plethora of small and innovative start-up companies; the well-established BigBio pioneers such as Biogen and Genzyme; and the recent influx of Big Pharma who wish to stay close to this rich source of biotech innovation.'
Mrs. Kean added: ``The stock price gains we've seen in the last year were driven by the established industry leaders, since their products and commercial successes are the most visible and easily measured. More importantly for investors seeking new opportunities, though, we foresee that the next phase of market capitalization growth will come from the mid- and small-tier biotech companies, who are poised for commercialization of their products over the next 12 to 36 months.'
Next week's conference is the first investor-focused meeting created by the biotech industry itself through the Massachusetts Biotechnology Council, with sponsorship from two regional investment banks and ten other organizations. Over 58 biotechnology companies will present on a wide range of emerging technologies, including genomics, combinatorial chemistry, pharmacogenomics, monoclonal antibodies, and gene therapy.
``In Massachusetts we are fortunate to have many attractive investment opportunities in biotech; both technology platform companies in the genomics area as well as strong product stories,' commented Will Muggia, Senior Partner at Westfield Capital Management Company. Westfield Capital is an investment advisory firm located in Boston, Massachusetts managing more than $1.4 billion in institutional client assets.
``The Massachusetts academic community offers the richest biotechnology research environment in the world, resulting in the formation of over 250 biotechnology companies. This conference provides the financial community the opportunity to participate in the development of the exciting new products that will transform the health care industry,' remarked Joseph F. X. McGuirl, Executive Director at the University of Massachusetts's Office of Commercial Ventures and Intellectual Property.
``The excitement around our first annual Mass Opportunities biotech conference has been overwhelming. This forum allows investors to participate in the many opportunities in the industry,' said Janice Bourque, Executive Director of the Massachusetts Biotechnology Council.
The strong performance of the biotechnology industry was attributable primarily to the success of the larger capitalization companies, however, micro-, small- and mid-capitalization companies increased over 60%. Overall, companies that increased their market capitalization outnumbered those that lost market capitalization by a two-to-one ratio. Publicly traded companies that increased their market capitalization by $300 million or more included Alkermes, Inc. (Nasdaq: ALKS - news), Biogen, Inc. (Nasdaq: BGEN - news), Genzyme Corporation (Nasdaq: GENZ - news), Leukosite, Inc. (Nasdaq: LKST - news), Millennium Pharmaceuticals, Inc. (Nasdaq: MLNM - news), Sepracor Inc. (Nasdaq: SEPR - news) and Transkaryotic Therapies, Inc. (Nasdaq: TKTX - news). |
