Biotech set to outperform health care

The biotechnology industry is expected to rebound and outperform health care and the rest of the market this year, according to findings from an  investor perception study released by Thomson Reuters and the  Biotechnology Industry Organization at the 11th Annual BIO CEO &  Investor Conference in New York, USA. The perception study is an  in-depth assessment of Wall Street's views of the biotechnology  industry, its current challenges, its relative valuation, and the  outlook for 2009.

According to participants, who represent over 80 firms with $2,300.0  billion in assets under management, the credit crisis has shifted  investors' focus with over 80% acknowledging that the effects have  forced them to change their investment approaches. In particular, they  have stated that a company's cash position is now more important. More  than two-thirds in the study expect greater M&A volume in 2009, with  major pharmaceutical companies buying biotechnology firms of all sizes  and large biotechs buying smaller companies. Additional key findings  include:

- investors are optimistic about the performance of biotechnology stock;