Comments on the article that you posted:
<< Most products will fail and many companies will fail. >>
Sounds like "sky is falling" type of talk. Biotechs are high risk, and products will fail. But, he is talking about 1998. "Most" will fail?
<< By contrast, he said biotech stocks in previous years tended to move in concert with sector leaders >>
1997 was a year of tremendous purchases of the "big cap" leaders, not only in biotech. Basing predictions of how biotechs will do in 1998, based on an unusual 1997 trading year, may not be correct.
<< increased difficulty of U.S. biotech companies to obtain financing for ongoing operations >>
This certainly is always a problem. But, the big drug companies are still going to need new products and will be willing to pay for good science, as in the case of LLY and LGND.
Andy, thanks for posting the article. It was interesting, but I found it too negative, such as when it implied that most biotech products will fail "in 1998", IMHO. I'm not an expert in this, though. I wonder what percentage of biotech companies fail each year?
I wonder how the "off-label" rule will effect GENZL's "femur only" Carticel procedure?
I've found before, when analysts say that the sky is falling; that is the time to buy! (selectively)
Regards, Bob |
