Biotechnology sector woes to continue, says Genentech CEO

The alarming fall in biotechnology stocks in recent months is likely tocontinue for some time, according to Genentech's chief executive Arthur Levinson. Quoted in the Los Angeles Times, he said that biotech stocks are unlikely to resume "the rocket climb, at least in the near term."

Speaking at the JP Morgan H&Q health care conference in San Francisco, USA, Mr Levinson argued that advances in the understanding of human genes will not necessarily translate into shorter development times for new drugs, as biotechnology research productivity has failed to improve significantly so far, despite increased R&D spending. He added that stock valuations and the need for capital will accelerate the pace of industry mergers and the biotechnology sector could require an estimated $3 billion to fund R&D, as well as other spending this year.