| "The drug sector is out of favour...we have had 12 profits warnings in the pharma sector since January 2001 compared with two between 1990 and 2000. This is the worst time ever for pharma and it has impacted the biotech sector." Are these really the worst market conditions yet? Many think they are and it is certainly true that 2002 has so far been a roller coaster ride for investors in the biotech industry. Can companies attract investor support despite the doom and gloom? What should companies be doing to maximise the value of their shares? The biotech sector is suffering from the excesses of 2000 when over US$37 billion (versus US$16 billion in 2001) was raised, as well as from the poor broad market conditions. The market malaise reflects an uncertain outlook for equities in general, especially for high growth/risk sectors such as early stage biotechnology and technology-related stocks. |
