Biotech proved to be a defensive investment with the Dow Jones Biotech Index up 4% in 2008 while the overall DJ Market Index was down 39%. The NASDAQ Biotech Index resisted better at -16% than the overall NASDAQ Market Index which fell 42%. No less than four Biotech companies figured among the top 10 Gainers of 2008 on Wall Street.
Vertex (NASDAQ:VRTX) was the top performer on the NASDAQ 100, up 27 % at $30.15, on the promise of its $ 75,000 a year treatment for Hepatitis C and a robust and well partnered portfolio.
Genentech (NYSE:DNA), boosted by revenue growth of its blockbuster portfolio and Roche’s offer to acquire 100% of the company, was up 24% at $ 89 a share.
Amgen (NASDAQ:AMGN) was up 24% on the promise of denosumab, an osteoporosis drug awaiting FDA approval, which reduces spinal fractures in post-menopausal women and is expected to reach peak sales of $ 2 billion.
Celgene (NASDAQ:CELG), now a fully integrated global bio-pharmaceutical company, was up 20% at $ 55.28, on continued growth of Revlimid and the integration of the Pharmion acquisition.
Gilead (NASDAQ:GILD) was up 11% at $ 51.14, on strong sales of its robust HIV portfolio.
Among the Mid caps, a special mention goes to ViroPharma (NASDAQ:VPHM), up 63.7% at $13.02.
ViroPharma continues to maintain strong sales of Vancomycin, still without generic competition, is moving forward with phase III trials for Camvia, its promising treatment for CMV infections and completed the $688 million acquistion of Lev Pharmaceuticals, giving it access to Cinryze, a treatment for hereditary angioedema, approved by the FDA in 2008.
Clearly, Big-Cap Biotech is a winner, replacing Big Pharma as a defensive investment. It is still growing fast. It is also much less vulnerable to generics, even if bio-similar legislation, increases competition for the more mature Biotech products.
Mid-Cap Biotech, with a combination of revenues and pipeline, is also well positioned for 2009, both as an acquisition target for pipeline-hungry Pharma and as a selective acquirer of smaller public and private biotech companies looking for a safer heaven in a challenging capital raising market.
Just like every year, Investors and Executives will convene at the JP Morgan Healthcare Conference to be held January 12-15, 2009 at the Westin St Francis in San Francisco, CA.
More insights to come soon!
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