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Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?

To: nigel bates who wrote (2997)	2/26/2001 6:29:16 PM
From: Biomaven	Respond to of 52153

Looks like the market is noticing that SKB/HGSI announcement. It's important because it restores some badly-needed credibility to the genomics stocks. Notice also that "one of the only high-growth sectors beyond tech" comment. It's arguable whether interest rate moves have that much significance for biotech valuation, but if that's what pundits want to believe, then fine. <g> (In some respects it actually hurts a stock such as HGSI sitting on a billion or so in cash). Headline: Human Genome Sciences, Genzyme General lead biotech charge =========================================================== By Jed Seltzer NEW YORK, Feb 26 (Reuters) - Shares of biotechnology companies rose steadily Monday on brightened prospects for genetic analysis companies, led by a 10 percent climb at Human Genome Sciences Inc. (NASDAQ:HGSI) and an 8 percent rise in shares of Genzyme General Corp. (NASDAQ:GENZ). Cambridge, Mass.-based Genzyme General on Monday raised its projection for 2001 revenues of Renagel, which controls blood phosphate levels for dialysis patients, by almost 10 percent, to a range of $120 million to $130 million. Rockville, Md.-based Human Genome Sciences said on Friday that a compound co-developed by the company and British drug giant GlaxoSmithKline Plc (ISEL:GSK) is now being tested to inhibit a Lp-PLA2, an enzyme associated with lipid deposits and plaque in heart arteries. Shares of the firm rose $5-3/16, or 10.63 percent, to $54 in afternoon trading on the Nasdaq. The American Stock Exchange Biotech Index <.BTK> rose 32.78, or 5.73 percent, to 605.32. The index never fell below its opening level of 572.54. Ten biotechs, including Myriad Genetics and Genzyme General, were on the net leaders for the day on the technology-laden Nasdaq market. "It's one of the only high-growth sectors beyond tech," said Prudential Securities analyst Charles Duncan, referring to flagging technology stocks in the wake of an industry slowdown. "The biotechs are also moving in part because there is a belief that there may be additional interest rate cuts," Duncan said. Such cuts could facilitate more risky investments, such as technology and biotechnology, as credit loosens. Among the big biotech gainers were Genzyme General, up $6-35/64 or 7.9 percent at $89-3/8; Affymetrix Inc. (NASDAQ:AFFX), which rose $5-5/16, or 9.67 percent, to $60-1/4; Abgenix Inc. (NASDAQ:ABGX), which climbed $5-9/16, or 18.35 percent to $35-7/8; and Millennium Pharmaceuticals Inc. (NASDAQ:MLNM), which soared $4-3/16, or 13.7 percent, to $34-3/4. All of those stocks, including Human Genome Sciences, placed on the list of the Nasdaq's top net gainers for the day. Duncan said that Human Genome Sciences helped lead the charge in part because of comments made by top officials at GlaxoSmithKline in its quarterly conference call last week. The newly merged drug firm highlighted genomics as a key to its growth strategy, Duncan said, and GlaxoSmithKline has a broad-ranging pact with Human Genome Sciences to develop gene-based therapies. Investment bank Robertson Stephens on Monday reiterated its buy rating on shares of Human Genome Sciences, citing the potential heart disease fighter tested by GlaxoSmithKline as the beginning of a busy year of clinical trials for compounds developed by Human Genome Sciences. Robertson Stephens analyst Michael King said in a research note that GlaxoSmithKline "stated that they would not have discovered this target without HGS. We believe this molecule speaks to the power of the intellectual property estate HGS has built and represents the first of many small molecule drug candidates from the HGS and GSK collaboration." The compound is currently in Phase I trials. "Lp-PLA2 represents a novel and potentially large drug market," King said. He added that he expects testing of an additional three to five Human Genome Sciences compounds to commence this year. Copyright 2001, Reuters News Service