State Of The Industry

Published: Apr 12, 2004

These are heady days in biotech investing. The AMEX Biotech Index (^BTK) is at 550 from 320 a year ago. Money is pouring into the market. The IPO window is opening up again. Biotech companies are regularly filing for IPO. The leading biotechs are on a roll. Genentech's Q1 profits were up 17% (see Genentech: Which Way Goes DNA?). Amgen is aggressively acquiring new companies - like Tularik - and signing deals (see Why Amgen and Tularik?). New drugs are getting approved and entering the market more quickly. Many early stage high tech venture investors are seriously looking at biotech plays. Valuations are on the rise. You may wonder, is this the 2000 bubble all over again ? Or is this truly a sustainable entry point to the market?

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