US Biotech Offerings Near $4 Bill In 1996

Biotechnology companies in the USA raised almost $4 billion in 100offerings last year, according to Coopers & Lybrand's 1997 Biotechnology Public Market Survey. This was almost twice the previous record of $2.1 billion in 1995 and was achieved despite a mid-year market slump.

The volatility of the stock market was felt on the market capitalization of the C&L Biotech 50, which represents the 50 biotechnology companies that account for almost 70% of the sector's global capitalization. Capitalization increased to almost $61 billion, up 8% on the previous year.

Factors Impacting Performance Most directly impacting biotechnology performance are government regulations, merger activity and the risk of failure of clinical trails, the survey found. In 1996, the sector benefited from Congress' reauthorization of R&D tax credits, the report notes, while much of the sector's volatility was laid at the feet of the unpredictability of clinical trials results. 22 companies received positive Phase III trial results last year, while 13 did not, the report notes.