Biotech business is booming again, according to several newspaper reports last week. Bill Castell, head of Nycomed Amersham, said last week the company may float its life sciences business, in recognition of the increasing importance of the new 'gene economy'. The firm, which makes research products, is considering the partial float of Amersham Pharmacia to use the shares to make acquisitions in life sciences.
Meanwhile, Cambridge Antibody Technology (CAT) shares soared by more than 50 per cent last week, following investment from US firm Human Genome Sciences Inc (HGSI). The two companies will work together, combining CAT's drug-making technology with HGSI's human genetics expertise.
Business writers say the latest biotech gold rush could be for real, although it may partly be down to boredom and disillusionment with the dot.com revolution. An article in the Independent newspaper suggests that patenting-power may give biotech firms the advantage over the dot.coms: 'A successful product has a seven-year window of opportunity, sometimes longer, in which to make hay' it points out.
Sources and References
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Growth is priced in at Nycomed
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Why investors are in love with biotech again
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Cambridge Antibody shares soar 58%
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Nycomed looks at float for life sciences arm
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