1
The biotechnology industry has a
futuristic appeal because it is about
medicines that "promise miracles"
even though there are companies that
are without products, revenues, earn-
ings, or scientific legitimacy. But in-
vestors need to be able to distinguish
the science from the fiction in order to
make good decisions on which com-
panies to invest in. Selecting
biotechnology stocks does not follow
the conventional methodology that is
concentrating on PE, EPS, financials,
etc. Picking biotechnology stocks fol-
lows a different set of rules. One con-
sideration is to concentrate on the
company's technology rather than just
its products. Because the prices of
biotech stocks can climb quickly
based on positive clinical news or
tumble helplessly on bad clinical
news. So how is an investor suppose
to "navigate" that minefield when at
times a biotech's stock price can reach
lofty prices and then the hopes and
anticipations for the science disap-
pear?
There is no doubt that investing in
biotech stocks is risky business but
science and technology attract in-
vestors who look to invest in tomor-
row. Besides, companies themselves
sometimes cannot predict what will be
turn to page 2, column 1
The investment newsletter that provides the investor with the essential information necessary to wisely invest in biotechnology
securities.
Volume 2, Issue 1
March 1998
To order, call (503) 649-4490
Beware of the Mutants: Superbugs!
It's everywhere. You see it on
dishwashing liquid, cleaning fluids,
bath soap, deodorant, toothpaste and
hand lotion just to name a few. Are
we really helping or hurting ourselves
with all these products containing an-
tibacterial agents? Or, are the compa-
nies selling these products trying to
ride on the coat tails of the antibiotics
market? Which, coincidentally was
the third largest pharmaceutical mar-
ket in 1997. That's right, as of Jan-
uary 1997, antibiotics made up the
third largest pharmaceutical market,
with systemic antibiotics totaling
$22.5 billion in worldwide sales, in-
cluding $6.4 billion in the United
States alone.
Antibiotics work by interfering
with a vital bacterial cell function at a
specific cellular target, either killing
the bacteria or arresting their multi-
plication, thereby allowing the pa-
tient's immune system to clear the
bacteria from the body. Currently
available antibiotics work on rela-
tively few targets, through mecha-
nisms such as inhibiting protein or
cell wall synthesis. These targets tend
to be present in all bacteria and are
highly similar in structure and func-
tion, such that certain antibiotics kill
or inhibit growth of a broad range of
bacterial species (i.e., broad-spectrum
antibiotics).
Emerging health problem,
"superbugs":
Reports from the federal Centers
for Disease Control and Prevention
estimates that more than two million
hospital-acquired bacterial infections
occur annually in the United States,
and between 60,000 and 80,000 of
turn to page 2, column 1
BioScope
Bio Analysis
1-5
Company Bios
6-9
Bio Pool Stocks
10-11
BioTech Stock Update
12-14
Next Issue:
Other Infectious Diseases
Bio Portfolio
15
Bio Indices
16
Stocking Up On
Biotechs
