BIOTECHNOLOGY Stocks Were among the Worst Performers in the UK Smaller Companies Market This Past Year and Valuations Are Now Very Depressed
BIOTECHNOLOGY stocks were among the worst performers in the UK smaller companies market this past year and valuations are now very depressed. As a result, I believe there are a number of exciting investment opportunities in the sector.
One example is Oxford BioMedica, a leading gene therapy company which has a strong technology and product base.
While gene therapy technology is still at an early stage, its potential is far-reaching. This is the one of the main reasons why I have gradually built up a holding in this company.
The first commercial gene therapy product is expected to reach the market in 2004 and it is estimated that the technology will be one of the biggest growth areas in medicine, with forecasts valuing the market at over $3.5bn by 2005.
Oxford BioMedica appears well placed to capitalise on the growth of the technology as it has a strong business franchise. It uses extensive in-house technologies to develop its own products, specialising in cancer, viral infection and neurodegenerative diseases.
In areas of treatment outside its core interests, the company licenses its technology to third parties for gene discovery, which expands its coverage into cardiovascular diseases, diabetes and cell-based therapy. …