International Biotechnology Trust (IBT) 22 sept 2003 Page 5
The fundamentals of the biotech industry remain intact with favourable demographics and
high barriers to entry once products are approved. More and more biotech companies are
turning profitable, product pipelines continue to widen and mature and there are more late
stage compounds in development than ever before. The biggest issue facing the drug
industry is a lack of new product opportunities and biotech companies are well placed to take
advantage of this, as pharmaceutical companies are willing to enter rich strategic
partnerships even at early development stages. The prospects for smaller biotech companies
are consequently stronger than for some time.
The volatility of the biotech market does mean that both IBT and the sector remain better
suited to the longer-term investor, as the short to medium term direction of the market
remains difficult to predict. IBT offers investors exposure to an exciting industry with strong
prospects through a portfolio of companies with strong upside potential, diversified across
the private and public markets and by clinical area and geography.
Andrew Barker
Chairman
