Pleasant surprise in the biotech sector

In this difficult economic environment the recent strong performance of the biotechnology sector is a rarity.

Fernando Luque 17 March, 2003 | 4:12PM
Facebook Twitter LinkedIn
Since the beginning of the year the MSCI World Index had fallen 10.3% in dollar terms, as of March 12th 2003. The pharmaceutical component of the index fell only 8.9% while the biotechnology component of the index rose 4.9%.

There are several reasons behind the relatively strong performance of the biotech companies. First, in early February Johnson & Johnson, a large American conglomerate, announced its $2.4 billion (£1.5 billion) acquisition of Scios, a biotech company. The share price of Scios, whose flagship product is Natrecor, a cardiovascular treatment, climbed 33% during February.

Also, a few days ago ImClone, another biotech company, received a $60m cash payment from Bristol-Myers to develop an experimental cancer drug called Erbitux.

Biotech firms are a

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

About Author

Fernando Luque

Fernando Luque  is Senior Financial Editor at Morningstar Spain