To: Lee Lichterman III who wrote (8586 ) 3/21/1999 8:50:00 AM From: Casaubon Read Replies (1) | Respond to
Could you be more specific about the reasons for your prediction concerning a negative correction in the biotech sector. Because, of all the various sectors, I consider this one pretty strong (that is not to say a general market correction wouldn't effect it). The reasons I consider the BTK a decent sector are threefold: A spate of new drugs advancing through clinical trials will start to pay off shortly (at the very least based on statistical numbers of drugs which recieved approval. At best, new technoligical understanding of disease mechanisms and high throughput advances will allow for higher than average success rates, in clinical approval rates, which should translate into profits). Second, I read an interesting article recently which stated the venture capitalists were actually buying up shares of maturing biotech companies, rather than funding startups, due to their undervalued status, potentially quick profit potential, and lower risk profile. Last, the biotechs main market is primarily domestic and will be least affected by world economic situations (that is not to say other countries don't purchase drugs, but by their very nature biotech products are expensive, so mostly "well funded" disease areas are targeted).iqc.com
