Whats going on in this market segment thats important at this juncture in terms of biotech?
Dr. Yang: Year to date the BTK is up about 13%, in line with the NASDAQ. I think that’s because of the strong performance of profitable companies, such as Amgen (AMGN), Gilead and Genzyme (GENZ). Those companies did really well, driving the BTK higher. When you look at the Russell 2000 alone, it’s up only 8% year to date. The small caps haven’t done as well as the big caps in biotech. I think the main reason for that is that this year biotech investors have tended to focus more on liquid big names, which they can actively trade to make up significant losses from last year. (The BTK was down 41% in 2002.) This has driven big cap valuation higher, not to mention that profitable biotech companies have posted better than expected earnings this year. So I think in the biotech area the big caps are going to continue to do well, but at this juncture the valuation has gotten quite high. What investors are looking for are companies that are near profitability, those with products already on the
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