Some of us flock to the Australian Grand Prix in search of the heady thrill of speed, risk and appreciation of extraordinary technology; others invest in biotechnology stocks. The risk-reward juxtaposition in biotech is probably what makes investing in this sector so intoxicating. The reward profile is certainly attractive but what should be in balance with this is the calculation of risk. Having said that, all innovation technologies carry risk baggage. Over the months before Christmas, a number of news outlets were publishing bullish stories about Australian biotech. Looking at the 100 or so listed companies in the ASX biotech index, only the top 20 are genuinely representative of delivering rewards to shareholders. The others are yet to deliver on the promise.
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