In the European Biotech Index, two stocks were exchanged at the latest adjustment date at the beginning of July. The shares of Cellectis and Oncopeptides were replaced by Formycon and Uniqure. The index comprises the 30 largest listed biotechnology companies from the European Union and the United Kingdom. In the current year, the stock barometer, which also includes the shares of Corona vaccine manufacturer BioNTech, is one of the strongest indices in Europe.
Biotechnology has long been nothing new. For thousands of years, mushrooms have been used to produce foods such as bread, beer, cheese, and wine. According to an analysis by the research company Global Markets Insights (GMI), around $497 billion were generated with biotechnologically developed products in 2020 – a large part of this in the biopharma segment. The experts at GMI expect that the biotech market volume could continue to grow by an average of 9.4 percent per year until 2027. Already today, a large proportion of the top-selling drugs come from the laboratory of a biotech company. Many investors tend to look to the USA for biotech investments. However, there has long been a promising biotechnology sector in Europe.
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Numerous companies now have a market capitalization of over one billion euros and numerous products in the pipeline
Genmab from Denmark, for example, focuses on the development of antibody therapies against cancer. MorphoSys from Germany, together with Johnson & Johnson subsidiary Janssen, has Tremfya, a treatment for psoriasis, on the market. With Gantenerumab for Alzheimer’s disease, Otilimab for arthritis, and MOR202 for cancer, MorphoSys has three other candidates in phase III. Argenx of the Netherlands is conducting research in the field of antibody therapies with a focus on cancer and autoimmune diseases. BioArctic’s partner Eisai reported in late June that the U.S. Food and Drug Administration (FDA) granted breakthrough therapy status to lecanemab. Recently, lecanemab entered Phase III for the treatment of Alzheimer’s disease, and BioArctic’s stock surged following the news. Pharmaceutical giants have long recognized the potential of European biotech companies and are cooperating with groups such as MorphoSys. In addition, biotechnology companies are popular targets for takeovers.
The index certificate reflects the performance of the index. If the index rises, the index certificate also profits. Biotechnology companies are mainly dependent on their research results. If they show success, a certificate rises. If studies produce disappointing results or if the development of a drug has to be discontinued, the share price may collapse.
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First published in FinanzNachrichten.de, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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