Biotech Sector Performance Update 1H 2010

Biotech Sector Performance Update 1H 2010

In my last update back in April, the broadest Biotech index (the 125 company Nasdaq Biotech Index, NBI) was up 11% for the year and ahead of just about every major sector. One quarter later things look a little different. The NBI is now down 5% and trailing 4 of the 10 S&P sectors (chart 1):

However, the spotlight continues to shine on the AMEX Biotech Index (BTK). The BTK is up 8.6% for the year after 2 of the 20 companies in this index were acquired (OSI Pharmaceuticals (OSIP) and Millipore, (MIL), see chart 2):

Since the market peak in October 2007, the NBI is now down again by ~10% but lagging only 1 of 10 S&P sectors (Consumer Staples). The BTK is holding a 20% gain – see chart 3:

* OSI was acquired by Astellas for ~$4B and Millipore was acquired by Merck KGA for ~$6B.

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