Difference between revisions of "Biotech Growth Rate outperforming classical pharmaceuticals"

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==Enablers:==
==Enablers:==
• Hope for good profit margins
• Hope for good profit margins<br>
• Hope for huge ROE
• Hope for huge ROE<br>
• Potential for spectacular breakthroughs in Research.  
• Potential for spectacular breakthroughs in Research.  
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Revision as of 13:03, 2 December 2005

Description:

Over the last years, the growth rate of biotech industry has by far outperformed the one of the classical pharma industry. This has not had a positive impact on the profitability of biotech as such – profitability of most classical pharma majors is still higher than the one of most biotech companies – but it has shown in the development of stock prices. Biotechnology stocks have outperformed the ones of classical pharma majors thanks to the hope for future profits.

Enablers:

• Hope for good profit margins
• Hope for huge ROE
• Potential for spectacular breakthroughs in Research.

Inhibitors:

• Increase (instead of decrease) of R&D cost in biotechnology • Decrease in R&D costs for classical crugs • Entry barriers getting lower because of increased availability of fundamental research • Drug Approval regulations getting stricter • Insecurity regarding the development of legal frameworks • Price Pressure due to exploding healthcare cost

Paradigms:

• Investors look elsewhere

Experts:

See our Research regarding Growth and Development issues

Timing:

Web Resources:

See our Research regarding Growth and Development issues