The FINANCIAL — Euronext on February 2 published its first “Biotech Barometer”, a new quarterly tool that offers an insight into major trends in biotechnology companies listed on Euronext markets.
Designed in partnership with Biotech Bourse, the barometer shows performance indicators, investor interest and market sentiment specifically for this sector, according to Euronext.
Biotech is a key sector for Euronext: between 2012 and 2016 the number of biotech companies listed on its markets rose from 12 to 45, with a market capitalisation of nearly €12 billion. The Biotech Barometer is designed to showcase this fast-moving sector. In addition to providing information to biotech companies—both listed and unlisted—it will help CEOs assess their momentum against a broader benchmark and give ordinary investors a simple guide to tracking market trends.
The quarterly publication is underpinned by data and innovative tools developed by Biotech Bourse and Euronext’s Post-Listing Services. The Biotech Barometer includes:
Trends in market statistics—prices, volumes and indexes
A market sentiment indicator
Institutional investor interest (number, capital invested, region of origin)
Key performance indicators for the biotech industry: companies’ cash positions, calls on the market, treatment areas and published clinical results.
Key findings of first Biotech Barometer
Although market sentiment remained cautious, Euronext and Biotech Bourse found that interest in biotech stocks rallied in Q4 2016. Specific findings:
Trading volumes rose. December was the sector’s fourth best month in 2016: trading in the 45 Euronext-listed biotech stocks covered by the Barometer generated over €46 million daily.
Some 140 new institutional investors bought shares in the 45 biotech companies, producing capital inflows of over €600 million. While 75% of these investors were based in Europe, 20% were in North America and 5% were in Asia.
The rate of calls on the market increased: the 45 Biotech companies listed on Euronext markets raised €214 million in Q4, up 75.2% over the previous quarter. In total they raised over €1 billion in 2016 (primary and secondary issues combined)
At year-end 2016, some 330 institutional investors were identified as holding positions in the 45 biotech companies, with combined holdings of over €3 billion and two-thirds of that total from Europe.