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

To: dalroi who wrote (4609)	9/5/2001 12:59:17 PM
From: Jim Oravetz	Read Replies (1) \| Respond to of 52153

Biotech Stocks Up On JP Morgan Bullish Call Dow Jones Newswires By Hollister H. Hovey Of DOW JONES NEWSWIRES NEW YORK -- After being laid up for the first half of 2001, biotechnology stocks are poised for healthy market outperformance as fundamentals are likely to improve throughout the rest of the year, JP Morgan told investors Wednesday. That bullishness provided a small shot in the arm for biotech stocks during the session, sending the AMEX Biotechnology Index up 1.09% to 535.72. The well-being of the group came into question this year as poor clinical results exacerbated negative sentiment around disappointing earnings reports. "With such a dismal performance, it is not surprising that the biotechnology sector is down 20% year-to-date with many individual stocks off more than 50%, compared to the Nasdaq, down 21% year-to-date," JP Morgan analyst David Molowa said in a Wednesday research note. But with most of that disappointment already priced into the shares and a string of positive catalysts on the horizon, the worst may be over. He expects a "majority of major companies will meet or exceed near-term financial expectations," with positive clinical news and licensing deals adding to the mix, he said. He expects the Food and Drug Administration to approve up to six biotechnology products by the end of the year, as the agency will likely nominate a new commissioner this fall, he said. "Considering the lack of positive news from other growth sectors, we believe that investors will look to increase their weighting in biotechnology as they attempt to capture performance by the end of the year," he said. His top picks include Waters Corp. (AT), which he upgraded to buy from long-term buy Wednesday, Biogeny Inc. (BEN), Amen Inc. (AMEN) and Invitrogen (IVGN). Waters' shares recently rose 3.72%, or $1.25, to $34.85. Shares of Biogen rose 2.18%, or $1.29, to $60.39, while Amgen shares were up 1.45%, or 93 cents, to $65.07.