Sharechat Logo

Biotech investors 'had it coming'

By Chris Hutching

Friday 21st March 2003

Text too small?
Australian-based Celentis chief executive officer Stewart Washer says the exodus of investors from the biotech sharemarket is a good thing because share prices are now at a realistic level.

"Most stock valuations currently aren't out of whack and there's a greater than even chance that the biotech dealmaking engine might splutter back to life with a vengeance," he told the Commercialising Biotechnology Conference in Auckland this week.

"What we can reasonably expect is a wave of mergers and acquisitions to strengthen investor confidence in the sector," he said.

"Just in case some of you big spenders out there would like to take your wallets out and spend up large, some of the once-hot names now trading below cash value include Celera Genomics, Transkaryotic Therapies, Incyte Genomics, Sequenom and Curagen.

"Indeed, there was much market speculation only a couple of weeks ago when Wrightson snared just over 15% of Genesis at much below Genesis' cash value if the company was wound up today.

But the biggest recent news was the impending merger of Pfizer and Pharmacia Corp. "It effectively creates a new model for US drug companies."

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar sags after avalanche of data and central bank action
Fonterra board starts planning chair succession
Fulton Hogan keeps Australian civil construction unit
Time for congestion pricing has come - NZIER
Colliers defends KiwiBuild as 'far from a colossal failure'
Pushpay shares rise as cost-cutting upgrades earnings guidance
20th September 2019 Morning Report
NZ dollar weaker against British pound on EC president's Brexit optimism
Todd plans Kapuni drilling campaign
MARKET CLOSE: NZ shares gain; appetite for KFC helps Restaurant Brands hit record

IRG See IRG research reports