Biotech investment climate in Australia - surviving the storm

摘要

BIOTECH companies are seen as high-risk investments in this bear market with a definite lack of buying interest on good news announcements. In many cases investors see good news announcements as a time to sell, driving the share price down. In recenttimes it is dangerous for a biotech company to stick its head up and many are being minimalist in their announcements and investor relations activities, reducing spend to lengthen their time till the next raising. The IPO window has been jammed shut in this storm and capital raisings are ending in tears with minimal uptake of rights issues and placements. Many listed biotechnology companies have very small market capitalisations under 20m dollar that are too small to attract institutional investors or large funds.