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Biotech / Medical : Biotech Stock Picking - 2002 -- Ignore unavailable to you. Want to Upgrade?

To: michael_f_murphy who wrote (210)	4/4/2002 2:44:44 PM
From: Tech Master	Read Replies (1) \| Respond to of 308

Michael: Can you put my data on the thread's header? I know that I'm pulling up the rear right now... but its early in the year! Thanks, TM

To: michael_f_murphy who wrote (210)	4/4/2002 4:44:36 PM
From: Arthur Radley	Respond to of 308

Has it been an ugly Q for biotechs? "Thursday April 4, 3:16 pm Eastern Time Press Release SOURCE: Standard & Poor's Biotech Funds Experience Harsh First Quarter in 2002, Says Standard & Poor's; Releases First Quarter 2002 Biotech Funds Review NEW YORK, April 4 /PRNewswire/ -- Standard & Poor's reported today that following their weak performance in 2001, the trend in biotech funds has continued into the first quarter of 2002. The NASDAQ Biotechnology Index is down 15.94% for the first three months of this year, paralleling a similar performance of -16.08% in 2001. While portfolio managers are optimistic about both the growing profitability of biotech companies and the pipeline of new products expected within the next couple of years, investor skepticism and a rash of bad news from the FDA continues to depress the sector. A leading provider of financial information and investment analysis, Standard & Poor's released this information through its online service, Fund Advisor. Fund Advisor reports that while slow economic recovery and investor attitudes arising from the Enron bankruptcy have had an impact on the overall performance of the U.S. stock market during this year's first quarter, the biotech sector was hammered by a handful of harsh, but company-specific woes including: * Inconclusive results of an independent analysis of Provenge, a prostate cancer drug developed by Dendreon (DNDN) sent the stock plunging 40% on the day of the announcement. * Inspire Pharmaceuticals (ISPH) stock price plummeting 75% in a single day after the company reported disappointing results during patient testing for an eye-drop treatment. The stock has yet to recover and is currently languishing at the $2 level. * FDA refusal to accept data provided by ImClone (IMCL) on its colorectal cancer drug, Erbitux. The stock has been struggling all quarter to reach the $25-level, down from nearly $47 at the end of 2001. * FDA denying approval of Sepracor's (SEPR) anti-allergy drug, Soltara. The company's stock price plunged from $47 in early March to a current price of $19. * Protein Design Labs (PDLI) reporting disappointing data on its psoriasis drug, Zenapax. The stock has lost nearly half of its value since the New Year. On a brighter note, much attention has been focused on the proposed merger between biotech's two largest companies, Amgen (AMGN) and Immunex (IMNX). While many critics initially criticized the $16-billion price tag for Immunex as too lofty, investors generally seem pleased with the deal. Since the proposed transaction was announced in December, both stocks have risen 8% to 10%. Given that Amgen and Immunex together account for nearly 23% of the NASDAQ Biotech Index, their relatively strong price performance underscores how poorly the remaining major stocks in the sector have fared so far this year. Another glimmer of hope rests on the Goldman Sachs recently issued report forecasting that big drug makers may begin snapping up smaller biotech companies. Citing the announced planned acquisitions of Collateral Therapeutics Inc (CLTX) by Schering AG; and of private Belgian biotech firm Tibotec-Virco by Johnson & Johnson (JNJ), Goldman believes the time is ripe for big drug makers to make a move on biotech. Goldman noted that acquiring smaller biotech companies makes financial and strategic sense for the big drug companies, which are finding it difficult to increase their product pipelines and, at the same time, receive higher return on their cash. The complete scorecard of biotech funds follows at the end of this release. Fund Advisor is part of Advisor Insight, a web-based solution designed specifically for financial advisors, offering Standard & Poor's investment intelligence and a wealth of tools to help make investment decisions. Fund Name 1st Quarter Year 2001 2002 Returns Return (%) (%) SunAmerica Biotech/Health 30 Fund (SBHTX) -6.7 -9.2 Smith Barney Biotechnology Fund (SMBAX) -9.1 -18.7 Orbitex Health & Biotechnology Fund (ORHAX) -13.1 -9.5 Franklin Biotechnology Discovery Fund (FBDIX) -14.6 -20.5 PIMCO RCM Biotechnology Fund (DRBNX) -15.2 -24.7 Alliance Select Inv Biotechnology Fund (ASBAX) -15.4 -26.1 Rydex Srs BioTechnology Fund (RYOAX) -15.9 -17.3 Brinson Funds: Global Biotech Fund (BNBTX) -16.4 -23.7 Fidelity Advisor Biotechnology Fund (FBTAX) -16.6 -24.8 Excelsior Biotech Fund (UMBTX) -16.8 -21.9 John Hancock Biotechnology Fund (JBTAX) -16.9 (March 2001 inception) Deutsche Global Biotechnology Fund (DBBTX) -18.8 (March 2001 inception) Munder Biotech-2 Fund (MBTAX) -19.1 -22.3 Monterey Murphy New World Biotech Fund (MNWBX) -23.4 -17.6 Amerindo Health & Biotech Fund (DNAAX) -25.4 -26.6 ProFunds Biotechnology Ultrasector (BIPIX) -36.2 -18.7 NASDAQ Biotechnology Index -15.9 -16.1