NEW YORK, NY--(Marketwire -08/16/12)- Biotechnology stocks continue to be some of the strongest performers in the markets as favorable legislation, such as the FAST and TREAT acts, have helped boost investor optimism within the industry. The iShares Nasdaq Biotechnology Index Fund is up over 28 percent in 2012 -- handedly outperforming the Dow Jones industrial average year-to-date. Five Star Equities examines the outlook for companies in the Biotech Industry and provides equity research on Avanir Pharmaceuticals, Inc. (AVNR) and Dendreon Corporation (DNDN).
The FAST and TREAT acts introduced in 2012 have helped accelerate the development, review and approval process of medicines/personalized therapies for patients suffering from serious and life-threatening diseases. According to recent data from Thomas Reuters, biotech mergers & acquisitions activity is currently at a four-year high as large pharmaceuticals are facing major patent cliffs. So far in 2012 the volume of biotech M&A has exceeded $25 billion, compared to roughly 10 billion in the same period of 2011.
"Their patents have expired, and as a result they have holes in their revenue line they are trying to fill," said Scott Lindsay, global head of mergers and acquisitions at Credit Suisse. "The other part is just shoring up the pipeline they have. So even if they don't have a major patent problem, they're all looking for growth."
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Avanir Pharmaceuticals, Inc. is a biopharmaceutical company focused on bringing innovative medicines to patients with central nervous system disorders of high unmet medical need. The company recently reported net loss for the fiscal 2012 third quarter was $15.0 million, or $0.11 per share, compared with a net loss of $16.1 million, or $0.13 per share, for the same period in fiscal 2011.
Dendreon Corporation is a biotechnology company focused on targeting cancer and transforming lives through the discovery, development, commercialization, and manufacturing of novel therapeutics that may significantly improve cancer treatment options for patients. Shares of the company fell sharply after reporting they would be closing down their Provenge manufacturing plant in New Jersey.
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