February a cruel month for biotech

Biotechnology stocks fell 7 per cent in February, dropping below their August 2003 levels, according to stockbroker Intersuisse.

The Intersuisse Biotechnology Index showed that 20 biotech stocks rose in February, 7 were unchanged and 55 fell. Losers included Australian Cancer Technology (ASX:ACU) which has fallen 40 per cent since chief executive Paul Hopper resigned and Chemeq (ASX:CMQ), which was down 28 per cent.

"Shareholders have limited tolerance of flat prices. Investors don't continue to invest in a seemingly flat market," warned Intersuisse corporate director Jonathan Buckley. "The window of biotech cap raisings will slow unless share prices begin to go up again."

Biotechnology stocks have outperformed the All Ordinaries in the longer term, the report said. The Intersuisse Biotechnology Index has risen 24 percent per annum since 1996, compared to a 7 per cent rise in the All Ordinaries over the same period.