Biotech has positive year, despite weak 2007 fourth quarter, says Burrill

"The biotech industry finished the year in good shape with the Burrill Biotech Select Index, a price-weighted index tracking 20 of biotech's 'blue chip' companies, gaining 9% in 2007 ahead of the Dow, which finished up 6.4% and on par with the Nasdaq, which closed up 9.8%," noted Steven Burrill, chief executive, Burrill & Co, a San Francisco, USA-based global life sciences firm with activities in private equity, venture capital and merchant banking and media. "It could have been an even better year were it not for a sub-par final quarter of 2007, one that is usually one of biotech's best," he added,

The Burrill Biotech Select Index dropped over 6% in December (down 5% in the quarter) on the heels of a difficult month for Neurocrine Biosciences (down 65%), Celgene (down 25%), Amgen (down 16%) and Genentech (down 12%). It was "deja vu all over again" for Neurocrine. In 2006, the company's share price lost almost 80% of its value. While it did recover during 2007, the company's shares lost more than half their value in December, plunging to an eight-year low, after the Food and Drug Administration asked the company for additional data on indiplon - its insomnia treatment drug candidate. Celgene stumbled over concerns of weak November sales for its leading cancer drug Revlimid (lenalidomide), which it markets as a treatment for two cancers of the blood - multiple myeloma and myelodysplastic syndrome. Onyx Pharmaceuticals had a much more positive story; while down 62% in 2006 following a Phase III product trial stumble, the firm recovered nicely and has been one of Wall Street's "darlings" all year long with its stock value finishing the year up a massive 426% on positive clinical trials data.

Onyx and Gilead lead in 2007