12 mth low but company in good shape, page-5

This AAP story posted under PRR before, but I would say the last par or two relates pretty much to where PBI is heading:


``The market has turned so strongly against biotech that at least one company has more cash than its market cap,'' Intersuisse corporate director Jonathon Buckley said.

But Mr Buckley said biotechnology stocks, which make up about 10 per cent of ASX industrials companies, are volatile and an experienced investor may benefit from a future upswing.

``We're seeing more rational behaviour by some institutions which tend to be holding rather than selling because they have been through biotech troughs before and have a better understanding of drug products and medical markets,'' he said.

``The crystal ball job now is in trying to pick when the turnaround will occur.

``We have no doubt there will be a large number of winners in the sector and there will be some great Australian biotech success stories even within the next 12 months.''

Mr Buckley said investors need to divorce themselves from prevailing market pessimism towards the sector, which he believes can provide good investment opportunities.

``Australia has a history of medical research innovation that in the last decade has been commercialised with ... market gains of over five times or 23 per cent per annum including the recent downturn,'' he said.

``This commercialisation trend will not stop.''