Archive for March 2014

Several Factors Combine to Lift Biotech Industry

March 31, 2014

Last year saw a number of strong performances in the biotechnology industry as the sector benefited from several overall trends. In the past, many fund managers avoided biotechnology, as it requires specialized knowledge and a strong tolerance for risk. Managers fleeing a weakening mining sector and trying to dodge the falling price of gold, however, took to biotechnology in 2013, just as companies were posting startling gains.

Several small international firms saw their share prices rise by multiples of up to six, while others raised tens of millions of dollars in capital or successfully navigated initial public offerings. Executives with histories of success took the helms of several businesses, and in the fourth quarter, the biotech market rose to yearlong highs. In the United States, the market turned around after poorly performing for several years. Biotech companies able to find new funding in 2013 did so on the back of prospects for treatments in a variety of areas, including Alzheimer’s disease, regenerative medicine, and infectious diseases.