Rainbow Coral seeks place in $84.6 billion biotechnology sector, forming new division; AMAG merger with Allos called off

Florida, USA-based Rainbow Coral (OTCQB: RBCC) last week announced its intention to move into the discovery of new medicines with the formation of a new division - Rainbow BioSciences - to pursue new opportunities in the burgeoning global biotechnology sector.

The biotech industry has made tremendous gains recently, with all biotech ETFs significantly outperforming the S&P 500 over the last five years. The global biotech market, led by the USA, was worth $84.6 billion in 2010 and is expected by many analysts to grow to $103 billion by 2013.

Biotech companies in the industry's traditional centers of Australia, Canada, Europe and the USA had a record-breaking 2010, with a 30% net profit increase compared to 2009. RBCC expects that trend to continue: With populations growing and aging rapidly across the developed world, the value of innovative new drugs, diagnostics and medical devices to prevent and treat complex modern diseases more effectively has never been higher.