Despite a sluggish market, shares in biotechnology companies are increasing in value – but the sector is complex, and it can take time for investors to see a return, SMH reports.
Resource stocks have run out of puff and the smart money is moving on.
Well some biotech stocks were posting double-digit gains as the rest of the market was going backwards last year.
They’re attracting the attention of some of the world’s biggest pharmaceutical companies and fund managers.
What’s good for health is good for wealth, it seems.
And judging by the burst of enthusiasm on Wall Street, where the average biotech stock listed on the NASDAQ exchange has soared almost 40 per cent in the past six months.
The Bell Potter Life Sciences Index has trailed it by 20 per cent over the past three months.
That could be about to change. Even as new floats were being cancelled left, right and centre last year, biotechs managed to raise another $630 million.
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