Monday, March 26, 2001
Tarred & feathered
News of Applied Biosystems' reduced growth rate wiped out $3.4 billion (41 percent) of its market cap last week, and sent shock waves through the laboratory equipment provider space. ABI shares fell $11.45 (33 percent) to $23 on 22.8 million shares on Thursday, and closed Friday at $23.25, down $16 on the week (see BioCentury Extra, Wednesday March 21 & Thursday March 22).
At least six other research tool providers fell 13 percent
or more on Thursday, and the group of 10 lab supply companies tracked by BioCentury
lost $6.3 billion (22 percent) of their market cap on the week (see "Caught
in the Crossfire"). The supply group's decline far outpaced the 6 percent
drop in the BioCentury 100.