Australian Biotech Sector Outlook Improves
Friday June 6 2003 5.30PM

"The dismal times faced by Aussie biotechs may be set to end" said Mr Mark Pachacz co-editor of Bioshares, Australia's independent biotech stock report.

"The Nasdaq Biotech Index has increased 19 per cent in the last two weeks and a turnaround in sentiment in US markets has the potential to stimulate interest in Australian biotech and pharmaceutical stocks" he said.

The basis for this boost in performance can be attributed to several good clinical trial results presented at the recent American Society of Clinical Oncologists conference and several new drugs approved by the FDA.

Although many biotech, pharmaceutical and healthcare stocks remain out of favour with Australian investors, more than a dozen have posted strong growth over the last three months. Stocks from the broader ASX Biotech and Healthcare Sector that have been heavily supported include Clover Corporation (+75%), Epitan (+72%), Peptech (+72%), Novogen (+60%), Psvida (+59%), Benitec (+57%), Chemeq (+52%), Arrow Pharmaceuticals (+42%), Biota (+42%), Imugene (+30%), Ventracor (+28%), Compumedics (+23%), Resmed (+23%) and Agenix (+17%).

The latest edition of Bioshares identifies six stocks that are likely early beneficiaries of a positive shift in sentiment towards the biotech sector. Peplin Biotech, Progen Industries, Antisense Therapeutics, Prana Biotechnology, Prima Biomed and Metabolic Pharmaceuticals are six speculative grade drug development companies that stand to gain ground if US trends are reflected more strongly in the Australian stockmarket.

"Traditionally the Australian biotech sector has lagged North American markets by several months, but the lag may be shorter this time because of the significant increase in interest by Australian investors in global biotech investment trends over the last three years" he said.

To obtain a copy of Bioshares edition 25 email David Blake at blake@bioshares.com.au and it will be sent by return email.

Bioshares is published by Blake Industry and Market Analysis Pty Ltd, a Melbourne-based research company that specialises in analysing companies in the healthcare and biotechnology sector.

For enquiries: David Blake, Bioshares Media Contact, +61 3 9326 5382

SOURCE: Bioshares
Web Site: http://www.bioshares.com.au