Energized Public Market
Publicly traded biotechnology stocks rebounded in mid-2009 from the correction of late 2008 and early 2009 and have remained solid, at or above historic levels through the beginning of December. The Amex Biotechnology Index shows year over year increases from 2003 (lowest closing price, $321.00) through early December (closing price of $909.45 on December 4, 2009).
The Index price reached $800 in July 2009 and hit $925 in the third quarter of 2009, the highest point in the Index’ history. To put this in context, the Index traded between $650 and $840 in 2006 and 2007 and between $596 and $864 in 2008. The Index has been more volatile in the past two years than in previous years, but since July, it has remained above $820. It has consistently outperformed the Nasdaq, Dow, and S&P 500 since mid-2005. While not predicting the outcome for a particular company or industry segment, the strength of this Index reflects regained energy and stamina that are likely to provide opportunities for innovation and growth in 2010.