ASX biotech stocks surged by 54% in 2013
SYDNEY - Analysis by healthcare fund manager BioScience Managers shows an outstanding year for biotech stocks on the ASX in 2013, with an average gain of 53.6% across the sector -- compared with an All Ordinaries index increase of 14.7% and the S&P/ASX 200 Health Care Index, which increased 23.5% for the calendar 2013 and 79.9% over two years.
But dDespite the strength in the sector, many retail investors are still nervous when considering life sciences companies, according to Chief Investment Officer Matt McNamara. “We’ve seen a surge of new listings in the US biotech scene with large price premiums and this sentiment is shared more among professional investors in Australia,” he said.
BioScience Managers’ investment Alchemia Limited is one of a number of examples of biotech stocks well supported on the ASX in 2013, rising 48.1% to increase its market cap by $60 million. Mobile health technology company iSonea Limited was another standout performer, boasting a share price increase of 379% for the calendar year to lift its market cap to $88 million. www.biosciencemanagers.com (ATI).