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Australasian Biotechnology, Vol. 11, No. 5, 2001, pp. 22 DELOITTE FINANCIAL REPORT Code Number: au01052 BIOTECH INDEX DOWN IN TOUGH MARKET CONDITIONS The past few months have been a tough time for all technology stocks and the biotechnology sector has certainly not escaped unscathed. Over the period since March 2001, the NASDAQ Composite Index has fallen 5.7% and the NASDAQ Biotech Index has fallen even further, ending on 27 July 2001 at 8.5% below its March 2001 level. Year on year the NASDAQ Biotech Index has fallen in excess of 22%. In Australia, the ASX Healthcare and Biotech Index rose by 7.2% over the five months to 27 July 2001. This rise has been driven mainly by an increase in the share price of:
The Deloitte Biotech Index has also increased by 7.2% over the period, powered along by major gains for heavy-weight companies CSL and Resmed, and gains for some of the smaller companies. These gains have however been offset by a widespread fall across many of the small and mid-capitalised biotech stocks. Excluding CSL, the Deloitte Biotech Index is down 8.7% compared to its level at 1 March 2001. Despite the difficult times, the number of companies included in the Deloitte Biotech Index demonstrates the strength of the Australian Biotech and medical device sector. At 27 July, the Index included 58 companies with a market capitalisation of $15,513 million, which represents a significant industry. In the five months since 28 February 2001, the share prices of many companies included in the Deloitte Biotech Index have fallen. In total 26 companies (or 48%) of all companies included in the Index have seen a decline of greater than 25% over the period and five companies have seen a decline greater than 50%: Having listed at $0.50 on 25 October 2000, Analytica went into voluntary administration on 8 May 2001. At the time of entering voluntary administration, Analytica shares were trading at $0.095 and options at $0.01. Key events in the period for other companies showing significant falls are:
Only nine companies" share price rose during this period, with four showing increases greater than 25% and two increases in excess of 50%: BIOTECH NEWSPrana Biotechnology's preferred compound clioquinol is currently in Phase II human clinical trials at the Royal Melbourne Hospital with results expected to be announced in the first half of 2002. During June, work by Professor Ashley Bush, a member of Prana's Scientific Advisory Board, in which he demonstrated the effectiveness of clioquinol in animal experiments, was featured in Neuom, a medical science publication and featured on the front page of the health section of the Wall Street Journal. In May 2001, MicroMedical Industries was granted a US patent for its artificial heart covering all aspects of the "VentrAssist" rotary blood pump and other applications of the technology. In June 2001 a second US Patent was granted broadening the scope to cover the VentrAssist artificial heart's unique bearing system to include exclusive hydrodynamic support. MicroMedical places shares with several European Institutional Investors. The eight million new shares at $0.78 each, raised $6.24m.
Copyright 2001 - AusBiotech |
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