Investors turn cold shoulder to Canadian biotechs
Anyone tracking trends in biotech financing is likely to get a chill from the latest numbers on the Canadian biotech scene. According to Desjardins Securities, a growing level of aversion to risk helped cut the flow of venture capital to a paltry $150 million in the first quarter--down from $637 million for the same period a year ago. Analyst Yagi Maher says the sudden drop has less to do with an aversion to biotechnology as an investor reluctance to go with any small cap company these days. And developers have responded by sidelining some development programs as they wait for better terms and more cash availability.
- read the story from the National Post
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By Rod Raynovich | Posted 1:55pm | July 17, 2008
Canada is consists primarily of smaller cap biotechs that were worse hit over the past 12 months. Biotech ETF's that are now up for the year like XBI, focus on mid to large cap biotechs like GILD,CELG and MATK. When speculation returns to biotech and especially smaller caps Canadian biotechs will roar back.
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