Navigation Links
Biotech Continues Upward Climb in October

SAN FRANCISCO, Nov. 1 /PRNewswire/ -- On the heels of a positive third quarter, the biotech industry continued its upward climb in October, even in the wake of eroding consumer confidence about the state of the economy and interest rate jitters as the markets drew to their month end close. The Burrill Large-Cap Biotech Index, for example, rose an impressive 6.1% in October -- in step with the NASDAQ, which was up 5.8% and well ahead of the DJIA which was unchanged.

"Entering the final two months of the year, biotech is in good shape," said G. Steven Burrill, CEO, Burrill & Company, a San Francisco based global leader in life sciences whose principal activities are in Venture Capital, Merchant Banking and Media. "Investors had a great deal to keep them interested in biotech during the particular, Biogen Idec, which put itself 'up for sale' raising speculation that big Pharmawill go on an end-of-year buying spree adding large biotech companies with strong product pipelines to boost their own portfolios. And M&A transactions have picked up once again with several deals announced including the Galenica Group buying Canadian-based Aspreva, and Perkin Elmer picking up umbilical cord blood banking company ViaCell in a transaction valued at about $283M.

"Barring some dramatic unforeseen changes, the strong performance of the industry in the public markets will continue until the end of the year principally driven by biotech's emerging and elite companies," Burrill added.

"The Burrill Biotech Select Index performance is up 17.5% since the start of the year and is on track to equal its stellar annual 22% gain two years ago. At that time Amgen and Genentech led the with their share values down 15% and 9% respectively year-to-date other companies such as Gilead Sciences (up 42% YTD) and Illumina (up 43%) have picked up the slack and this demonstrates just how many successful biotech companies the industry now has," Burrill noted.

Major movers in the Large-Cap Index were Genzyme whose shares shot up 23% in October on the news that that the U.S. Food and Drug Administration (FDA) had granted its product Epicel (cultured epidermal autografts) marketing approval under the Humanitarian Device Exemption (HDE) for the treatment of life-threatening wounds resulting from severe burns. Biogen Idec's (BIIB) shares closed the month up 11% boosted by its announcement that it was up for sale. The $21-plus billion market cap of Biogen may mean that only large pharmaceutical companies will be able to afford the price tag.

The Burrill Mid-Cap Biotech Index also showed a strong performance with an increase of 5% in October (22% year-to-date). Driving the group was Telik Inc. (up 41%), after reporting that the FDA had removed its partial hold on clinical trials for its developmental drug, Telcyta, designed to treat advanced ovarian cancer and non-small cell lung cancer. Also jumping 24% was Aspreva Pharmaceuticals, which has agreed to be acquired by Galenica for approximately $915 million.

IPO's heat up again

After a short lull, the appetite for biotech IPOs increased once again. Four more biotech companies rolled out their IPOs in October bringing the total number of biotech IPOs in 2007 to 26.

-- MAP Pharmaceuticals, which is developing inhalable drugs to treat

migraine and pediatric asthma, priced its 5 million share offering at

$12, 20% below the midpoint of their proposed $14 to $16 range. During

the month its shares strengthened to close at $13.88.

-- Targanta Therapeutics, which developing an antibiotic treatment for

gram-positive bacterial infections, priced 5.8 million shares at $10

per share, 30% below the midpoint of its proposed range. The company's

shares closed down 13% at the end of October.

-- Genoptix, a company providing specialized laboratory services to

hematologists and oncologists, raised $85 million pricing its 5 million

share offering at $17, above its proposed $14-$16 range. Investors

liked the company's prospects and in the first day of trading after its

offering the company's share value jumped almost 50%.

-- On the last day of the month Nanosphere, which markets a platform for

molecular diagnostic testing, priced 7 million shares offering at the

low end of the $14-$16 range.

Two companies joined the IPO runway in October: molecular diagnostics company XDx. engaged in the development of gene expression-based tests to monitor transplant rejection and autoimmune diseases, and Canadian-based Akela Pharma, which is focused on therapeutics for treatment of cancer pain.

"The good news is that the recent biotech IPO graduates are not floundering once they get out of the gate as has been the case for other new public biotech companies over the past few years," commented Burrill. "Companies such as WuXi PharmaTech, whose stock has almost doubled since its IPO debut and Sirtris Pharmaceuticals (up 56%) are providing investors with renewed confidence about new biotech issues. We certainly see that our prediction of 30 biotech IPOs completed in 2007 will come to pass...and it could even be more given the prevailing mood of the markets toward biotech."

Biotech Industry's Market Cap

The biotech industry's market cap rose 3.6% in October to close at $499 billion.

Biotech Indices

% %

change change

Index 12/29/06 3/30/07 6/29/07 9/28/07 10/31/07 Month Year



Select 303.96 317.03 319.5 348.75 357.14 2.41% 17.50%


Large Cap

Biotech 424.56 419.97 409.56 450.85 478.59 6.15% 12.73%



Biotech 171.55 179.02 183.23 199.75 209.25 4.76% 21.98%


Small Cap

Biotech 143.6 144.44 142.06 137.03 143.72 4.88% 0.08%


Genomics 101.69 107.98 91.68 96.62 102.68 6.27% 0.97%


AgBio 124.52 141.8 171.3 179.11 189.53 5.82% 52.21%


Industrial 150.85 148.59 163.99 157.54 160.64 1.97% 6.49%


Diagnostic 122.79 136.76 149.77 169.72 175.89 3.64% 43.24%


Nutraceutical 629.56 639.2 613.86 677.58 693.44 2.34% 10.15%

NASDAQ 2415.29 2421.64 2603.23 2701.5 2859.12 5.83% 18.38%

DJIA 12463.15 12354.35 13408.62 13895.63 13930.01 0.25% 11.77%


2000 787.66 800.71 833.7 805.45 828.02 2.80% 5.12%


Biotech 754.25 764.18 779.49 821.72 840.36 2.27% 11.42%


Pharma 345.06 342.01 349.75 346.44 351.31 1.41% 1.81%

SOURCE Burrill & Company
Copyright©2007 PR Newswire.
All rights reserved

Related biology technology :

1. The state of global biotech: An Ernst & Young perspective
2. Olympics of biotechnology has international flavor
3. Biotech officials praise focus of new venture fund
4. Getting noticed in Genetown: Wisconsin biotech on display
5. Madison biotech NimbleGen files for IPO; one of states best-funded firms
6. Wisconsin biotech firm receives $107K NIH grant
7. Biotech executive books a career flight thats closer to home
8. Manufacturing partnership will move into biotech and biomedical spaces
9. Wisconsin wont get Georgia biotech without a fight
10. The 10 biggest events shaping biotech in 2006
11. Gala Biotech among companies sold for $3.3 billion
Post Your Comments:
(Date:12/8/2016)... ... December 08, 2016 , ... ... flexible packaging for their exceptionally efficient human mesenchymal stem/stromal cell (hMSC) expansion ... of bioprocess media products engineered to radically streamline culture processes, minimize processing ...
(Date:12/8/2016)... , Dec. 8, 2016  HedgePath Pharmaceuticals, ... that discovers, develops and plans to commercialize innovative ... shares of common stock were approved for trading ... begin trading on the OTCQX, effective today, under ... for the OTCQX market, companies must meet high ...
(Date:12/7/2016)... ... December 07, 2016 , ... ACEA Biosciences, Inc. ... and expansion clinical trial for its lead drug candidate, AC0010, at the World ... trial was to determine the safety, antitumor activity, and recommended phase II dosage ...
(Date:12/7/2016)... /PRNewswire/ - Zenith Capital Corp. ("Zenith" or the "Company") announces webcast ... the Company,s Annual and Special Meeting. The ... on Thursday, December 15, 2016 at Mount Royal ... 4825 Mount Royal Gate SW, Calgary, Alberta ... and management information circular, containing the matters to be considered ...
Breaking Biology Technology:
(Date:12/2/2016)... Dec. 1, 2016   SoftServe , a ... BioLock , an electrocardiogram (ECG) biosensor analysis system ... key IoT asset. The smart system ensures device-to-device ... steering wheel and mobile devices to easily ,recognize, ... As vehicle technology advances, so too must ...
(Date:11/29/2016)... VILNIUS, Lithuania , Nov. 29, 2016 ... high-precision biometric identification and object recognition technologies, ... kit (SDK) for fingerprint recognition solutions that ... extract a fingerprint template using less than ... used in compact devices that have limited ...
(Date:11/22/2016)... According to the new market research report "Biometric ... Signature, Voice), Multi-Factor), Component (Hardware and Software), Function (Contact and Non-contact), Application, ... is expected to grow from USD 10.74 Billion in 2015 to reach ... and 2022. Continue Reading ... ...
Breaking Biology News(10 mins):