There are other reasons to be bullish. He notes that some 350 biotech drugs are now in human clinical trials, and more than 100 of them are close to coming to market. And at least 20 biotech companies are posting profits, compared with four just six years ago. And the group has strong financing. The market for initial public offerings has stayed open to biotech issuers, too.
Biotech companies fall broadly into three categories.
Genomics companies are among the riskiest investments. The safest investments, however, are biotech's top-tier businesses. They have real profits, products on the market, and well-filled pipelines. Much of the recent buzz about biotech is due to the rise of genomics companies, which mine the human DNA sequence for information that might be turned into novel therapies. Xolair appears to prevent asthma symptoms, instead of lessening the effects of an attack once it's under way, as current medications do.