Commentary on 1994: Capitalist Road

Two months ago, we totted up the score on clinical trial outcomes and concluded that, despite the widespread perception of an industry failing dismally, the actual hit rate for biotech products was within the expected range for drug development.

Extending that analysis for the full 1994 year reinforces that conclusion. Yet the markets truly have punished the sector, with the BioCentury 100 down 29 percent for the year, on top of an 18 percent hosing in 1993. The drug-development biotechs with market caps below $500 million lost a total of $6.7 billion, or 37 percent, in total valuation. As our annual stock round up in BioCentury Part III shows, only the top-tier group managed to hold its value in 1994...