NEW YORK, May 23, 2002 (BUSINESS WIRE) -- Diversified Biotech Group, Inc. (DBGI), the publishers of the InvestBio(TM) Research Report, today announced its investment opinion on BioTransplant, Inc. (NASDAQ: BTRN chart, msgs), Allos Therapeutics, Inc. (NASDAQ: ALTH chart, msgs), Vaxgen, Inc. (NASDAQ: VXGN chart, msgs), MGI Pharma, Inc. (NASDAQ: MOGN chart, msgs), and Millennium Pharmaceuticals, Inc. (NASDAQ: MLNM chart, msgs)
In issuing its investment opinion, Diversified Biotech Group, Inc.'s Chairman Scott L. Mathis addressed speculative investors and biotech experts, emphasizing the tremendous opportunities in the biotechnology sector over the next several years. He predicted that the Dow will rise significantly in the next 3 to 4 years and that the biotech sector will lead the charge. Mathis added, "We believe that the markets have reached their low point in this cycle and that a rebound should commence relatively shortly. From the investor's point of view, the declines that we have witnessed may well create tremendous opportunity in the coming years. With published reports indicating that investors have their cash sitting on the sidelines, the present may well be the time to take advantage of biotech opportunities such as those mentioned in our investment opinion."
Mathis pointed to the following companies in the small- and mid-cap sector: BioTransplant, Inc. (NASDAQ: BTRN chart, msgs), Allos Therapeutics, Inc. (NASDAQ: ALTH chart, msgs), Vaxgen, Inc. (NASDAQ: VXGN chart, msgs), and MGI Pharma, Inc. (NASDAQ: MOGN chart, msgs). For large-cap, he cited Millennium Pharmaceuticals, Inc. (NASDAQ: MLNM. chart, msgs)
InvestBio's research indicates that, at the present time, the large pharmaceuticals are in big trouble due to weaknesses in their deficient pipelines and patent expirations on their currently marketed drugs. InvestBio sees an impending shift in power to the biotechnology sector. Biotechnology companies develop their products and bring them to later stages, putting their companies in a position to prosper and increase the value of future deal making ability. InvestBio's opinion is that large pharmaceuticals will develop a big appetite for biotechnology companies, thereby creating a new round of merger & acquisition activity and helping lift the overall valuation of the sector.
Aside from the fundamentals that are likely to propel the biotechnology sector, the InvestBio Report stated that investors should also consider supply and demand. There are currently about 430 publicly traded biotech companies in the U.S. Given the weak IPO market, this number is not presently increasing. A number of successful biotech firms have been or likely will be acquired by major pharmaceutical companies, and those whose products do not measure up, given the rigorous scientific demands, will likely go out of business. Unlike the dot.com era, where a good idea often was all that was needed to launch a new business, substantially more is needed in biotech to get a company off the ground. Dr. Ron Garren, DBGI's Chief Biotechnology Strategist said, "The supply of biotech stocks is relatively limited. When you consider that against the fact that there are approximately 100,000,000 investors in the U.S., one can quickly see that demand for these companies could well outrun supply and enhance valuations for this sector. Indeed, there is a reasonably high likelihood that a rising "tide" of investor sentiment may lift most of the biotechnology 'ships'."
DBGI's research reports are available for free to members of InvestPrivate, Inc. (www.investprivate.com) or can be purchased at www.multex.com. Individuals interested in more information in biotechnology investing can request a complimentary InvestBio(TM) Report at www.investbio.com. |
