JANUARY CRUEL TO ASX, BIOTECHS; BARGAINS GALORE
February 2nd 2008 07:13
Biotech Daily
Friday February 1, 2008
Daily news on ASX-listed biotechnology companies
Friday February 1, 2008
Daily news on ASX-listed biotechnology companies
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BIOTECH DAILY’S TOP 40 INDEX
Thirty-six of the Biotech Daily Top 40 Index (BDI-40) fell in the month of January with the BDI-40 down 15.3 percent for the month, compared to the All Ordinaries’ 11.3 percent fall.
Antisense looked heroic by comparison, up $5 million or 22.7 percent to a market capitalization of $27 million. Clinuvel recovered five percent of its previous falls to $109 million, Novogen crept up $1 million to $122 million and Benitec looked good by not moving from $27 million.
Heartware had the deepest fall for January, down $39 million or 28.7 percent to $97 million, followed by Alchemia, down $32 million or 28.6 percent to $80 million, Portland Orthopaedics (27.3%), Tissue Therapies (27.3%), Biota (26.5%) and Agenix (26.2%). Pharmaxis shed $183 million or 22.3 percent to $638 million.
The good news, if there is any, is that collectively the three Big Caps of Cochlear, CSL and Resmed improved 32.2 percent for the year to January 31, 2008 compared to the All Ordinaries fall of 1.05 percent for the same period.
CSL climbed 55.8 percent for the year to January 31, 2008, Cochlear was up 27.2 percent but Resmed fell 23.2 percent, down 13.4 percent in January.
The Biotech Daily Top 20 Index (BDI-20), which does not include the three Big Caps, fell 20.4 percent for the month and 25.3 percent for the year. The Second 20 fell 0.81 percent for the month and 21.6 percent of the year, but that is affected by the recent inclusion of Impedimed and Cathrx and the downgrading of Biodiem and Metabolic. Metabolic is trading significantly below its cash value.
Overall the BDI-40 fell 15.3 percent for the month compared to the All Ordinaries down 11.3 percent and 24.2 percent for the year compared to the All Ordinaries down 1.05 percent for the year.
As Biotech Daily’s financial analyst Marc Sinatra wrote on the day of the crash (see Biotech Daily January 22, 2008) “the sell-off in the biotech sector looks overdone”. Marc said Australian biotech shares would rebound but it wouldn’t be dramatic for most companies.
“Companies that are cashed-up and due to hit significant milestones over the next year are likely to recover quickly,” Marc said.
“Companies like Alchemia, Chemgenex, Circadian and Pharmaxis are clear bargains with several others worth investigating.”
Biotech Daily Top 40 ($m) v ASX All Ordinaries 2007-08
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