VCR ventracor limited

biotechs

  1. 423 Posts.
    Biotech stocks have plenty of high hopes and hype mixed together.

    Right now pharmaceutical companies are carrying out research for new drugs to treat cancer, obesity, aids, heart disease and there are companies that have developed world beating devices such as Cochlear for hearing implants and Ventracor for manufacturing the successful artificial heart pump and others who have developed methods for drug delivery that are achieving success.

    But the question begs is the latest share price hike a bubble?

    My belief is that it is not. Unlike the hype and blue sky projections of the dot-com boom Australian biotechnology is maturing with a string of products in the pipeline that should project us into the global big time. We are at the forefront of cancer treatments and anti –inflammatory treatments and devices as mentioned before.

    The sector is being driven by the advances in molecular biology and computer science, the major tools of discovery that have converged in the past decade. The sector is a growth engine, improving the quality of life and agriculture, and boosting economic development.

    My advice to investors is to do some research on the companies and keep a close eye on the fundamentals

    People behind it
    Patents they hold
    What potential they have and
    How persistent they have been in recent cycles.

    Australian biotech companies are leaner because of a tough couple of years and many have cut costs, hired commercially experienced leaders with offshore backgrounds who drove this process and have also focused on the more immediate prospective work.

    It is these companies that should be sorted out through careful selection to find the best of the sector and stay away from the land mines.

    Also keep in mind that Australian drug companies are small fish is a big sea, competing is a global market with strong competition from major pharmaceutical companies so the risks are higher but so are the rewards.
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.