Capitalization Of US Biotech Firms Rises To $110 Billion

Market capitalization of biotechnology firms based in the USA rose to$110 billion, up 25% for the year ending June 30, 1997, according to the joint Ernst & Young/Burrill & Company annual report, Biotech 1998: New Directions. Industry revenues increased 13% over the previous year's figures to $16.5 million, with product sales reaching $12.2 billion.

Genomics, The Major Driver In numbers of companies and business platform, value and partnering, genomics was found to be the major driver of industry growth during the year, with the report singling out Perkin-Elmer's acquisition of PerSeptive BioSystems for $360 million for the expansion of its gene identification and drug development platform. It also notes the acquisition of Somatix Therapy by Cell Genesys for its technology in developing treatments for cancer and central nervous system diseases.

Steve Burrill, chief executive of merchant bank Burrill & Company, claimed that targeted drug discovery and the design of therapeutics based on the molecular mechanisms of disease translates into future products that are "more effective, produce fewer side effects and have the potential for faster approval."