Local biotech stocks surging
Tuesday, 01 July, 2003
Latest good news from the finance market comes in a report from market analysts, Bioshares. The report rates Australian biotech stocks as ‘surging ahead in the June quarter’ with an over 20 per cent rise across a basket of 43 sampled stocks.
The report comes hot on the heels of a similar Intersuisse release detailing a better-than-market return on biotech stocks, which indicated local biotech performers had overtaken traditional stocks by 13% with a 27% leap in prices over the last year.
"This has been the biggest turnaround for Australian biotech stocks in over 2 years and there is a good chance the gains will hold up in the next two quarters," said David Blake, co-editor of Bioshares. “People are starting to take notice of biotechs,” he added.
The local surge was in part a reflection of activity on the NASDAQ, which increased its Drug Discovery Index by 26 per cent in the June quarter, and the Nasdaq Biotech Index which posted a 32 per cent gain to a June 28 close.
Likewise, the Amex Biotech Index has surged nearly 45 percent and continued to trade near 52-week highs since April.
“The new FDA commissioner, increased drug approvals and an overall willingness to look at biotechs in the US have all helped,” added Blake. “Although we may see some easing back as there is a degree of profit taking likely to happen,” he warned.
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