Encouraging data sparks investment
The gains took place against the backdrop of rising funds flowing into the sector locally and in the US this year.
The expected approval by the US Food and Drug Administration for regenerative cell group Mesoblast to start phase III trials of a congestive treatment led to its shares surging 9.6 per cent to $6.60 - a seven-month high.
Prana Biotechnology shares were pushed ahead on optimism for its memory loss and ageing agent, PBT2, after a positive reference in a peer-reviewed journal.
This lifted its shares by 43 per cent to 54.5¢, even though the results of phase II trials of PBT2 will not be released until March. This will provide the critical "proof-of-concept" data indicating whether further research is warranted.
Indicative of the strong investor interest for promising research progress, earlier this month Neuren Pharmaceuticals raised $21 million via a placement, with Osprey Medical raising $14 million.
In the unlisted space so far this week, Nexvet has raised $7 million and Hatchtech $12.6 million, on top of the $23 million it previously raised to fund its head lice research program.
Elsewhere in the sector, former ChemGenex management has moved to revitalise Invion, which has three phase II agents undergoing clinical trials, with several milestones due over the next six months.
"The biotech market is in much better shape than in 2008, 2009 or 2010," said Dr George Zavoico, of MLV and Co in the US.
"The risk-reward ratio in biotechnology is greater than with blue chips. Out of a portfolio of a dozen [biotech] stocks, two or three will do very well."
Frequently Asked Questions about this Article…
Biotech stocks are seeing a surge in share prices due to optimism around research progress and expected approvals, such as Mesoblast's anticipated FDA approval for phase III trials and positive references for Prana Biotechnology's PBT2.
Recent developments in the biotech market include steep share price rises for companies like Mesoblast and Prana Biotechnology, driven by optimism for research progress and expected FDA approvals.
Mesoblast's share price surged by 9.6% to $6.60, reaching a seven-month high, due to the expected approval by the US FDA to start phase III trials for a congestive treatment.
Mesoblast's shares surged by 9.6% to $6.60, reaching a seven-month high, due to the expected approval by the US Food and Drug Administration to start phase III trials of a congestive treatment.
Prana Biotechnology's PBT2 has sparked investor interest, lifting its shares by 43% to 54.5¢, following a positive reference in a peer-reviewed journal, despite phase II trial results not being released until March.
Prana Biotechnology's shares increased by 43% to 54.5¢ following optimism for its memory loss and ageing agent, PBT2, after receiving a positive reference in a peer-reviewed journal.
The current investment trend, with significant funds flowing into the biotech sector, indicates strong investor interest in promising research progress, as seen with companies like Neuren Pharmaceuticals and Osprey Medical raising substantial capital.
Investor interest is reflected in recent funding activities, such as Neuren Pharmaceuticals raising $21 million and Osprey Medical raising $14 million, indicating strong support for promising research progress.
Recent fundraising successes in the biotech industry include Neuren Pharmaceuticals raising $21 million, Osprey Medical raising $14 million, Nexvet raising $7 million, and Hatchtech raising $12.6 million for its head lice research program.
In the unlisted biotech space, Nexvet raised $7 million and Hatchtech raised $12.6 million, adding to the $23 million previously raised for its head lice research program.
Invion is being revitalized by former ChemGenex management, with three phase II agents undergoing clinical trials and several milestones expected over the next six months.
Invion, revitalized by former ChemGenex management, is focusing on three phase II agents undergoing clinical trials, with several milestones expected over the next six months.
According to Dr. George Zavoico, the biotech market is in much better shape now compared to 2008, 2009, or 2010, with a greater risk-reward ratio than blue-chip stocks.
According to Dr. George Zavoico of MLV and Co, the biotech market is in much better shape now compared to 2008, 2009, or 2010, with a more favorable risk-reward ratio than blue-chip stocks.
The risk-reward ratio in the biotech sector is considered greater than with blue-chip stocks, with the potential for two or three out of a dozen biotech stocks in a portfolio to perform very well.
The risk-reward ratio in the biotech sector is greater than with blue-chip stocks, with the potential for two or three out of a dozen biotech stocks to perform very well.
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