Study provides in-depth assessment of Wall Street’s views on the industry, current challenges, relative valuation, and the outlook for 2011
WASHINGTON, D.C. – Monday, February 14, 2011 – Study provides in-depth assessment of Wall Street’s views on the industry, current challenges, relative valuation, and the outlook for 2011
“This survey illustrates the long-term confidence that investors have in our industry while detailing the various challenges that impact valuation,” said Alan Eisenberg, Executive Vice President of Emerging Companies and Business Development at BIO. “The data will provide considerable insight into current investor perceptions of the industry that may be helpful in anticipating the sector’s performance this year.”
The study is expected to inform and improve communications between biotech executives, shareholders and policymakers. The study gathered feedback from 135 investment professionals representing firms with $2 trillion in equity assets under management, including $166 billion invested in healthcare and $38 billion invested in biotech.
“It’s clear from our findings that biotech continues to be a sector of high interest to investors,” said Brad Joseph, Director of Biotechnology and Healthcare at Ipreo. “We’re pleased to be able to bring this kind of actionable intelligence to biotech companies to help them prepare for meetings and better position themselves to potential investors.”
The BIO/Ipreo study indicates that the majority of investors believe that biotech is headed in the right direction and that this is generally a good time to invest. Additionally, the majority of investors expect that biotech will outperform the overall health care sector in 2011.
Other key findings from the study include:
- More than 86 percent of investors surveyed believe that the major biotech indices will end up in positive territory for 2011, with 35 percent forecasting double digit returns.
- Nearly 55 percent of investors believe that biotech will outperform the rest of the healthcare sector in 2011.
- Investors surveyed are more likely to invest in companies with late stage clinical development versus early stage.
- More than 88 percent believe that there are going to be the same or more IPOs in 2011 compared to 2010.
Full study results will be presented at the BIO CEO & Investor Conference Closing Plenary http://bio.org/bioceo/program/closing-plenary-survey-says.aspx session, which will dissect the survey results and forecast the year head in biotech with senior buy-side and sell-side analysts. Speakers at the Closing Plenary include:
- Chris Swindle, Managing Director, Life Sciences, Wedbush PacGrow Life Sciences (moderator)
- John Craighead, PhD, Managing Director, Investor Relations & Business Development, Biotechnology Industry Organization (BIO)
- Vaughn M. Kailian, Managing Director, MPM Capital
- Oleg Nodelman, Portfolio Manager, Biotechnology Value Fund (BVF)
- Geoffrey Porges, Senior Biotechnology Analyst, Sanford C. Bernstein
- Eric Roberts, Managing Director, Caxton Advantage Life Sciences Fund
The 13th Annual BIO CEO & Investor Conference http://bio.org/bioceo, hosted by the Biotechnology Industry Organization, provides a forum for institutional investors, research analysts and senior industry executives to discuss investment trends, attend company presentations, conduct one-on-one meetings, and learn about investment opportunities within the biotechnology industry. This event is the world’s largest independent investor conference focused on publicly-traded biotechnology companies.
Media registration http://bio.org/bioceo/media/media-registration.aspx is complimentary for qualified investors and credentialed members of the media.
Ipreo is a global leader in providing market intelligence, data, and technology solutions to all participants in the global capital markets, including sell-side banks, publicly traded companies, and buy-side institutions. By combining state-of-the-art new issuance systems with the premier global financial and investor data, Ipreo enables our capital markets clients to execute deals more efficiently, maximizing time and resources. Our applications include end-to-end bookbuilding systems, roadshow & conference management platforms, and electronic document delivery. Additionally, Ipreo’s suite of investor prospecting and CRM solutions offers the most accurate and comprehensive institutional contacts data and profiles in the industry. Ipreo is the only financial services provider to offer solutions across all asset classes for the Equity, Fixed Income, Municipal, and Syndicated Loan markets. Ipreo is a KKR portfolio company with nearly 700 employees supporting clients in every major financial center around the world. For more information, please go to www.ipreo.com.
BIO represents more than 1,100 biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and in more than 30 other nations. BIO members are involved in the research and development of innovative healthcare, agricultural, industrial and environmental biotechnology products. BIO also produces the BIO International Convention, the world’s largest gathering of the biotechnology industry, along with industry-leading investor and partnering meetings held around the world. BIO produces BIOtech Now http://biotech-now.org/, an online portal and monthly newsletter chronicling “innovations transforming our world.” Subscribe to BIOtech Now. http://biotech-now.org/subscribe
- For Ipreo
- Kate McKay
- Managing Director, Global Marketing & Communications