Big money biotech guru to speak @ RAEDI meeting
G. Steven Burrill, one of the top biotechnology evangelists in the U.S. and a backer of the Elk Run bio park by Pine Island, is headlining the annual meeting of the Rochester Area Economic Development entity.
are 328 biotechs that are publicly traded on major U.S. markets (down
7.8% year-to-date), and at the end of September the group of public
biotech companies had an aggregate market cap of $352 billion (up 10.4%
for the quarter).
In addition, there are 51 companies that have market caps greater than $1 billion (up 4% year-to-date); 36 companies that have market caps between $500 and $999 million (up 38% year-to-date); and 136 public biotech companies (41%) that have a market cap below $100 million.
the data is encouraging, we don’t yet believe biotech is fully back on
track, as many companies are still struggling to find the necessary
funding to maintain their operations.
Almost half of U.S. public
biotechs have market caps below $100 million and we are seeing
companies still consistently turning off their lights for the last time.
It is important to remind ourselves that the biotech industry is undergoing a major transition, a process that will likely continue for at least another two quarters.
This is because we do not yet know how President Obama’s proposal for healthcare reform will fully impact the biotechnology industry, and the status of biosimiliars legislation (follow-on biologics) is also still unresolved.
There are fears that these issues will drive the prices of innovative drugs lower and eat away at biotech company profits. Despite the market uncertainties, we will likely see the industry build on the momentum it has gained over the past several months.