Steve, Heres some more good news on Biotechs. Report cites targeted drug discovery as the big mover and shaker for Biotechs, and as reported by H&Q last Jan, LGND is expected to be the first successful Biotech focusing on this area:
Biotech Market Caps Up From Last Year
WESTPORT, Sep 23 (Reuters) - The total market capitalization of the United States
biotechnology industry rose 25% over last year to $110 billion, according to Ernst &
Young's "Biotech 1998: New Directions" report and analysis by Burrill & Co., a San
Francisco, California-based private merchant bank.
According to a Burrill & Co. press release, compared with last year, biotech industry
revenues rose 13% to $16.5 billion, and product sales increased 13% to $12.2 billion.
The biotech industry in Europe experienced a 50% increase in market capitalization
from $4 billion last year to $8 billion this year.
In addition, revenues for the European sector rose 17% to $2.1 billion. According to
Ernst & Young, the number of biotech firms in Europe increased from 584 last year to
716 companies this year.
G. Steven Burrill, CEO of Burrill & Co., said that genomics was a major factor in the
growth of the biotech industry this year. He said, "Targeted drug discovery and the
design of therapeutics based on the molecular mechanisms of disease translates into
future products that are more effective, produce fewer side effects and that have the
potential for faster approval."
He added that the biotech industry's negative setbacks in clinical development of drugs
has a direct impact on stock prices and investor behavior. "Ultimately, the success of
biotechs is directly tied to product approval, but as companies expand their pipeline of
products and build a larger base, the industry as a whole will see less volatility at
negative news and become more stable," Burrill said.
-Westport Newsroom 203 319 2700 |
