Arab Today, arab today talk of biotech bubble rattles wall street
Last Updated : GMT 10:57:56
Arab Today, arab today
Arab Today, arab today

Talk of biotech bubble rattles Wall Street

Arab Today, arab today

Arab Today, arab today Talk of biotech bubble rattles Wall Street

Biotech sector is at top of Wall Street's worry list
New York - AFP

The biotech sector is at the top of Wall Street's worry list as analysts debate whether high-flying pharma stocks are a bubble that is about to burst.  
Trade in biotech stocks was mixed Thursday as US stocks clawed back near even after early losses. Biotech was a key factor in the market's rout Wednesday, which included a 2.4 percent drop in Nasdaq.
Biotech stocks have been among the market's hottest investment over the last year, rising 35 percent on average, with some companies surging even more. Celgene has soared nearly 70 percent, giving it a market capitalization of $94.4 billion, more than Goldman Sachs.
Other high-flyers include Gilead Sciences, which makes the lucrative Sovaldi drug to treat hepatitis C, and Biogen, which last week released promising clinical results for a medication to treat Alzheimer's disease.
There is little question of the sector's long-term promise, but some analysts point out that the commercialization of potential blockbusters like Biogen's aducanumab for Alzheimer's is a lengthy and uncertain regulatory journey.
Biotech companies have been vulnerable to sharp falls on Wall Street on poor clinical or sales results. After an early surge, biotech company Dendreon went bankrupt in November due to poor sales of its once-promising prostate cancer drug Provenge.
"Is the biotech sector in a bubble?" asked Josh Brown chief executive of Riholtz Wealth Management. "Yes. Full stop."
The current round of unrest recalls a US Federal Reserve report released in July 2014 that said valuations for the sector appears "substantially stretched."
- Pharma deal frenzy -
Consolidation has been a factor in the sector's ascent, as comparatively small biotech firms attract attention from pharma heavyweights plagued by patent expirations.
The latest big deal came earlier this month when AbbVie announced plans to buy Pharmacyclics, which specializes in leukemia drugs and had 2014 revenues of $730 million. AbbVie will pay $21 billion under the deal.
So far in 2015, health care and pharma companies have announced $102.3 billion in mergers and acquisitions, the richest total for this time of year since 2009, according to Dealogic.
BTIG analyst Hartaj Singh rejects the thesis that biotech is overvalued.
"I think valuations are fine," he said.
Singh has said in reports that the surge in biotech stock values near multi-year highs reflects "a fundamental shift in the sales and earnings power of the sector."
BTIG cited a 10-20 percent increase in drug approvals by the US Food and Drug Administration and the European Medicines Agency compared with historical norms.
Biotech companies can see earnings spike quickly with winning products. The 13 new drugs approved by the FDA in the first half of 2013 had average peak sales potential of $12.4 billion, or about $1 billion per drug, according to research cited by BTIG.
Still, Singh agreed that the industry could encounter volatility in the upcoming earnings season. The first quarter will make for a difficult comparison because of the strong results put up a year ago.
"There is a lot of nervousness," Singh said, adding that one or two earnings misses could trigger a broader sell-off. "It might not be pretty."

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today talk of biotech bubble rattles wall street Arab Today, arab today talk of biotech bubble rattles wall street

 



Arab Today, arab today
Arab Today, arab today Fadi explains secrets of  Nancy Ajram's newlook

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars

GMT 03:11 2017 Saturday ,25 February

50 Tunisian exhibitors at Gulfood 2017, Dubai

GMT 02:19 2017 Saturday ,25 February

SIEL expo, March 1-4

GMT 12:30 2017 Friday ,24 February

Norway's Telenor to leave Indian telecom market

GMT 10:17 2017 Friday ,24 February

Dow stands out as global stocks tread water

GMT 16:11 2017 Thursday ,23 February

Bahrain Bourse daily trading report

GMT 16:08 2017 Thursday ,23 February

BHB holds VAT seminar
View News in Arabic - Business: أسواق مالية
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Ola Ghanem hopes to work with M.Ramadan

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday