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The medicinal market expects large investments
23 October 2007Crisis of credits of subprime level, which has created threat of world financial system default and has led to instability in many markets, has very negatively affected profit of many enterprises. In this connection investors now are anxious by searches of the companies which actions, on the one hand, would be not especially risky, and with another - could make a profit.
Biotechnological sector’s shares ideally correspond to all these requirements. Analysts consider, that capital investments in such securities can appear successful especially now, when the world economic community is pending reports on profit of these companies, which should be published this week.
Medical Technology Stock Letter’s experts mark, that it is the most favorable moment to buy securities of the companies, which are producing medicines, “which should be bought”. It is necessary to note, that since 2000 the index of biotechnological companies ASEBI (American Stock Exchange Biotech Index) has surpassed other leading indexes. Experts mark, that it has occurred in many respects owing to such companies, as Celgene Corp., ImClone Systems Inc. And Biogen Idec Inc., which make the advanced anti-cancer medicines.
However, even despite of this trend, participants of the market consider, that to similar shares still have to grow. Estimation of cost of this sector is on the lowest for last 10 years a level. For example, Amgen Inc. (the company, which, is by the way, the leader among the companies of this sector on sales volumes) it is burdened by very low market price.
It is expected, that this week Amgen and a number of other companies (including Biogen, Genzyme Corp. And ImClone, which many giants consider as the purpose for absorption) will publish the reports on profit. While Amgen’s “multiple” index (the ratio of market price of company’s share to its net profit counting upon one share - a comment of RBC) is equal to 13. The same parameter of its competitor Genentech Inc. makes 22. Here it is necessary to note, that the profit of last one has grown for III quarter on 21 %, in many respects owing to huge sales of its anti-cancer medicine Avastin.
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