ASX BIOTECH STOCKS SURGE 54% IN 2013
7 January 2014: Analysis from leading healthcare fund manager BioScience Managers has highlighted the outstanding year for biotech stocks on the ASX in 2013 with an average gain of 53.6%* across the sector.
These findings compare with the All Ordinaries index that increased by 14.7% over 2013 and theS&P/ASX 200 Health Care Index which increased 23.5% for the calendar year and 79.9% over the past two years.
“Despite the strength in the sector many retail investors are still nervous when considering life sciences companies,” said 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.”
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.
Alchemia has been slowly building its market share for generic anti-coagulant fondaparinux since it received approval in 2011, establishing a $9.6 million profit share for FY2013. The company has imminent Phase III trial results for anti-cancer drug HA-Irinotecan while also establishing partnerships with Astra Zeneca and Merck Serono for earlier stage drug discovery programs during 2013.
Mobile health technology company iSonea Limited was another standout performer for the biotech sector, boasting a share price increase of 379% for the calendar year to lift its market cap to $88 million. In September this year iSonea launched the AirSonea wheeze monitoring device, its flagship product for asthmatics. The company has attracted business identity Bruce Mathieson as a cornerstone investor.
Adelaide-based drug developer Bionomics progressed a number of its programs targeting renal cancer, depression and anxiety as well as announcing a new partnership with Merck & Co targeting chronic pain. Bionomics had one of the most impressive increases in market cap in the sector, jumping $180m to finish the calendar year at $311m.
“These companies are well-known to those in the sector but are flying somewhat under the radar in the broader market,” commented Mr McNamara.
“Speculation is always there at this time of year regarding the potential for a breakout in the biotech sector. 2013 might go down as the year it turned the corner as we expect a strong year again for the sector in 2014 with product pipelines moving closer to commercialisation and a number of big pharma licensing deals.”
BioScience Managers Fund I remained in the top decile of Global PE/VC funds for FY2013, continuing to deliver a 26%+ net annual IRR and having returned $46 million as it enters its sixth year. Fund II has made six investments to date in AmpliPhi Biosciences Corp, Avita Medical , Nexus6 (NZ), Nexvet Biopharma, SeaDragon (NZ) and Rex Bionics (NZ) .
Biotech/healthcare highest percentage increases on ASX in CY2013
Company | Closing price 2012 | Closing price 2013 | Gain |
Admedus | 0.021 | 0.155 | 638% |
OncoSil Medical | 0.025 | 0.13 | 420% |
iSonea | 0.07 | 0.335 | 379% |
Prana Biotechnology | 0.21 | 0.77 | 267% |
Resonance Health | 0.018 | 0.063 | 250% |
pSivida | 1.30 | 4.54 | 249% |
Neuren Pharma. | 0.035 | 0.115 | 229% |
Medical Aus | 0.08 | 0.245 | 206% |
Impedimed | 0.08 | 0.245 | 206% |
Rhinomed | 0.015 | 0.045 | 200% |
*Calculated using average share price percentage change across 94 companies within the Australian listed life sciences sector
**ENDS**
CONTACTS
BioScience Managers Pty Ltd | |
Bronwyn Dilley
Investment Director Bioscience Managers +61 3 9618 8236 +61 424 862 600 |
Rudi Michelson
Principal Monsoon Communications +61 3 9620 3333
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About BioScience Managers Pty Ltd (www.biosciencemanagers.com)
BioScience Managers Pty Ltd (formerly IB Managers) is a leading life sciences investment firm, headquartered in Melbourne, Australia. Established in 2003, BioScience Managers offers a global, multi-disciplinary team, bringing an international perspective together with the track record, networks and expertise required to convert that perspective into informed, high return investment decisions.
The firm operates a high value-add model, providing assistance and support to portfolio companies via a global team and international network of independent industry advisors. With combined experience of over 170 investments, more than 40 IPO’s/ reversals in Europe, the USA and Australia, and a diverse skillset specific to the bio-based industries, BioScience Managers aims to provide investee companies with significant value-add over and above capital invested.
BioScience Managers currently has AU$96.8m under management. Its second fund, the Asia Pacific Healthcare Fund II has completed a first close at $55m and is still open to investors. In addition, BioScience Managers provides management and investment services to UK ISDX listed Union Medtech (www.unionmedtech.com).