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Despite Global Economic Concerns Biotech Industry Thriving in 2012


Published on 2012-06-15 05:25:21 - Market Wire
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June 15, 2012 08:20 ET

Despite Global Economic Concerns Biotech Industry Thriving in 2012

Five Star Equities Provides Stock Research on Dendreon and Galena Biopharma

NEW YORK, NY--(Marketwire - Jun 15, 2012) - Despite the recent economic turmoil in Europe, the Biotech Industry has been home to some of the strongest performers in the market in 2012. The SPDR S&P Biotech ETF (XBI) and the First Trust NYSE Arca Biotech Index ETF (FBT) year-to-date are up 22 percent and 29 percent, respectively. As the world continues to face evolving health challenges the discoveries of new therapeutics and vaccines are critical. Five Star Equities examines the outlook for companies in the Biotech Industry and provides equity research on Dendreon Corporation (NASDAQ: [ DNDN ]) and Galena Biopharma Inc. (NASDAQ: [ GALE ]).

Access to the full company reports can be found at:
[ www.FiveStarEquities.com/DNDN ]
[ www.FiveStarEquities.com/GALE ]

Expiring patents have been a major dilemma for pharmaceutical companies. New products that are being introduced are not expected to generate the same level of revenues of the products that have lost patent protection. The Obama administration is currently analyzing a proposal in which the exclusivity period for biologics would be cut down by 5 years. Mergers & Acquisitions activity is expected to pick up in 2012 as companies look to make up for loss revenues. M&A allow companies to acquire products that are already proven in the market place without the hassle and costs associated with research and development.

"Many of the pharmaceutical companies started producing everything in-house out of their own R&D organizations and over time they've failed to produce enough that way. So the industry is now coalescing around a 50-50 model of half on your own and half bought in. There are some things we'll do for ourselves but we need to be constantly on the lookout for new technologies," said Angus Russell, Chief Executive of Shire PLC.

Five Star Equities releases regular market updates on companies in the Biotech Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at [ www.FiveStarEquities.com ] and get exclusive access to our numerous stock reports and industry newsletters.

EvaluatePharma, the premier source for commercial analysis of the pharmaceutical and biotech sector, earlier this week released their World Preview 2018 report. According to the report between 2011 and 2018 the market for prescription drugs will grow 3.1 percent a year to total $885 billion. In that time over $290 billion of prescription drug sales are at risk as a result of patent expirations, analysis from EvaluatePharma shows. In the last decade the Pharmaceutical Industry has spent $1.1 trillion on research and development as companies scramble to replace lost revenues from patent expirations.

"It is often said there is an R&D productivity issue, but is it just poor portfolio strategy and investment choices? Is too much money being spent chasing too few quality R&D projects?" asks Anthony Raeside, Head of Research at EvaluatePharma. "The patent cliff in its own right may not be the problem, but rather the way management reacts to it."

Five Star Equities provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. Five Star Equities has not been compensated by any of the above-mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at:
[ www.FiveStarEquities.com/disclaimer ]


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