The biopharmaceutical sector has quickly rebounded after its dismal December performance, where it shed almost 8 percent in valuation, and it hasn't taken long for biotech investors to shake off their bear mindset. In fact, they have been generally more upbeat following the 37th Annual J.P. Morgan Healthcare Conference. As a result, the BioWorld Biopharmaceutical index outpaced the general markets and recouped its loss and then some and returned a significant 10 percent gain in value in January, compared with the Dow Jones Industrial Average, which gained 7 percent. (See BioWorld Biopharmaceutical index, below.)
Despite the sector coming off a terrible fourth quarter when investors shied away from biopharmaceutical company equities big time, the start to 2019 hasn't followed the same trend, thanks to an easing of capital market volatility. The BioWorld Biopharmaceutical index, a price-weighted index comprising 21 of the leading biotech and big pharma companies by market cap, has risen in value by an impressive 7 percent so far this month, ahead of the performances of the Dow Jones Industrial Average and the Nasdaq Composite at 5 percent and 6.6 percent, respectively.
Despite the sector coming off a terrible fourth quarter when investors shied away from biopharmaceutical company equities big time, the start to 2019 hasn't followed the same trend, thanks to an easing of capital market volatility. The BioWorld Biopharmaceutical index, a price-weighted index comprising 21 of the leading biotech and big pharma companies by market cap, has risen in value by an impressive 7 percent so far this month, ahead of the performances of the Dow Jones Industrial Average and the Nasdaq Composite at 5 percent and 6.6 percent, respectively.
According to the 2019 J.P. Morgan conference playbook released in advance of the investment bank's 37th annual health care meeting in San Francisco, over the past 18 years the NYSE Arca Biotech Index (BTK) outperformed the S&P 500 index approximately 78 percent of the time during event week. With the curtain now closed on the JPM meeting, the public companies involved in the sector will be pleased to learn that this statistic held true for another year.
Despite a rough ride on the capital markets, particularly in the second half of the year, the biopharmaceutical sector had no difficulty in attracting capital. According to BioWorld data, the $67.1 billion that was raised by global companies from public and private sources in 2018 was just shy of the leading total of $68.4 billion generated in 2015 and places it firmly in second place in terms of totals raised in the history of the industry.
According to the 2019 J.P. Morgan conference playbook released in advance of the investment bank's 37th annual health care meeting in San Francisco, over the past 18 years the NYSE Arca Biotech Index (BTK) outperformed the S&P 500 index approximately 78 percent of the time during event week. With the curtain now closed on the JPM meeting, the public companies involved in the sector will be pleased to learn that this statistic held true for another year.
Despite a rough ride on the capital markets, particularly in the second half of the year, the biopharmaceutical sector had no difficulty in attracting capital. According to BioWorld data, the $67.1 billion that was raised by global companies from public and private sources in 2018 was just shy of the leading total of $68.4 billion generated in 2015 and places it firmly in second place in terms of totals raised in the history of the industry.
According to the 2019 J.P. Morgan conference playbook released in advance of the investment bank's 37th annual health care meeting in San Francisco, over the past 18 years the NYSE Arca Biotech Index (BTK) outperformed the S&P 500 index approximately 78 percent of the time during event week. With the curtain now closed on the JPM meeting, the public companies involved in the sector will be pleased to learn that this statistic held true for another year.
Delegates convening in San Francisco Monday for the most important week of the year for the biotechnology sector will certainly be looking to presentations from industry executives and leaders at the 37th annual J.P. Morgan Healthcare Conference for important clues as to what the year ahead might hold for them and the strategies that will be needed to navigate what is likely to be a very challenging 12 months. The sector has just come off a terrible fourth quarter as investors shied away from biopharma company equities big time. As a result, the BioWorld Biopharmaceutical Index slipped 11 percent in value during this period.
Investors cooled on biopharma company equities, particularly in the final quarter of the year, with the BioWorld Biopharmaceutical Index slipping 11 percent in value during the period. While most companies will be glad to see the back of a turbulent year, some did manage to eke out respectable gains, mainly on achieving product approvals or signing lucrative partnership deals with big pharma companies. In this feature, we provide the top and bottom rankings from an analysis of the annual performances of all the public biopharma companies that are being tracked weekly by BioWorld. To be included in the study, a company's stock price had to be above $2 at the beginning of 2018.
