Analyst picks & changes

Biotechnology sector overview

Hambrecht & Quist analyst Richard van den Broek said he believes that the sector is poised for strong performance for the remainder of the year and beyond. Externally, two factors make biotech attractive relative to other sectors, he said. First, the current valuation disparity between biotech and pharmaceutical companies appears to be excessive, particularly if the rising number of new products coming from biotech companies is the start of a long-term trend. Second, biotech companies are relatively insulated from potential fallout from economic problems in Asia, and may be well-positioned to outperform the rest of the market if those problems persist. ...