Biotech, Being Small Is Better Placed For Discovery

In the search for new medicinal products to meet the continuing demand, the biotechnology industry is better positioned than the much larger pharmaceutical industry, Montgomery Securities's senior health care group research analyst Scott Sacane told those attending the firm's annual investment conference.

Despite the historic volatility and uncertainty of biotechnology investment, both he and Montgomery Securities' managing director and senior health care group research analyst, David Crossen, made a strong case for confidence in the sector.

New drugs developed by biotechnology firms cost about $236 million to develop, compared with $609 million for a drug developed by a pharmaceutical company, noted Mr Sacane. Average development time for a new drug is five years for a biotechnology product, compared to eight for one from the pharmaceutical sector, he pointed out.