UK biotechs feeling the chill from investors

One of the analysts at Seymour Pierce has been pondering the ice-cold attitude of investors to biotech stocks in the UK. Despite some big licensing news for the likes of Renovo [1], Antisoma [2] and Oxford BioMedica [3] in '07, Zhining Xu remarks that the British biotechs have dramatically underperformed. Other analysts note that while a host of biotechs are trading at a discount, they're likely to face some strong headwinds as they go back out this year to raise more money. It could be that investors just aren't patient enough to stick with a drug developer in the long dry spells between big announcements. Only nine of the 47 biotechs on the UK index made gains last year. Big losers: Vernalis [4], down 90 percent, and CeNeS [5], down 70 percent.

Still, says Xu, companies like Renovo, Antisoma and Oxford BioMedica may not be performing well, but they are positioned for a comeback. "All three of these companies have a solid cash position and have their lead programs covered by their partners so they are in a position to push ahead with early stage drug development projects," adds Xu.

- read the report [6] from the Financial Times

Related Articles:
U.K. researchers driven out by tough regulations. Report [7]
Europe moves to reclaim center stage. Report [8]
Group: EU should double research spending. Report [9]
The trouble with Europe. Editorial [10]