Lehman Brothers report highlights best biotechnology bets in Europe

Pan European Biotechnology: Market Conditions Create UnexpectedOpportunities, is the title of a new report from Lehman Brothers, looking at the growth prospects for companies at a time when investors have not exactly been throwing their money at the sector.

The broker notes that biotechnology firms listed on the US Nasdaq have been reasonably resilient, particularly those which are - or have metamorposed into - product companies. Notable successes among these have been Amgen, Genentech, ImClone Systems and Gilead Sciences. However, in Europe, it is a different story.

Lehman Bros claims that there have been very few bright spots, although some, such as Shire and, until recently Celltech, have managed to remain fairly stable in the market. However, the stocks that have suffered the most are those of German biotechnology companies which have been battered since what the brokers call "the Neuer Markt euphoria of early 2000." Many of these are trading well below their highs and even lower than their initial public offering price.