Strong Outperformance in the Biotech Sector Due to Technological Advances, Increase in Productivity and Innovation: Expert Analyst Ted Tenthoff Shares His Bullish View on the Space with TWST

Wall Street Transcript

67 WALL STREET, New York - September 19, 2013 - The Wall Street Transcript has just published its Biotechnology and Pharmaceuticals Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Health Care - Biotechnology and Pharmaceuticals - Biotechnology and Pharmaceutical Investing - Orphan Drug and Biologics Manufacturing - Oncology Drug Development - Orphan Drugs - FDA Approval Process - Reimbursement Trends

Companies include: Regeneron Pharmaceuticals Inc. (REGN), Vertex Pharmaceuticals Incorpo (VRTX), Cubist Pharmaceuticals Inc. (CBST), AstraZeneca plc (AZN), Arena Pharmaceuticals, Inc. (ARNA), VIVUS Inc. (VVUS), Alexion Pharmaceuticals, Inc. (ALXN), Gilead Sciences Inc. (GILD), Celgene Corporation (CELG), Biogen Idec Inc. (BIIB), Amgen Inc. (AMGN), GlaxoSmithKline plc (GSK), Array BioPharma, Inc. (ARRY), Novartis AG (NVS) and many more.

In the following excerpt from the Biotechnology and Pharmaceuticals Report, an expert analyst discusses the outlook for the sector for investors:

TWST: This is for our focus on biotech. The group has certainly done well over the last year, particularly versus the market. What's been the driving force in that strong outperformance?

Mr. Tenthoff: So it's interesting. I've worked at Piper Jaffray now for 10 years, and I was at Robertson Stephens for about five years before that, and I have to tell you, I've never been so excited about what's taking place in the biotechnology industry. It's really a matter of technological advances, including the sequencing of the genome, that is leading to accelerated learning in biology. This is in turn yielding a dramatic increase in productivity and innovation that is reflected in FDA-approved drugs.

Firstly, we're seeing several biotech companies launch the drugs themselves, such as Regeneron (REGN) and Vertex (VRTX), and become very profitable, resulting in massive increases in the stock performance.

Secondly, we're seeing companies continue to get acquired by Big Pharma for late-stage pipeline. One of our IPOs from 2010, Trius (TSRX), completed two pivotal studies in acute bacterial skin and skin structure infections and was just bought by Cubist (CBST) for more than $800 million this summer. We had another IPO from earlier this year, Omthera, which is developing a new omega-3 fish oil and was acquired by AstraZeneca (AZN).

So we're seeing this innovation and this productivity out of the sector yield not only more profitable biotech companies, but also a lot of M&A, and that's really what's garnering investor attention.

TWST: What has enhanced productivity? Has there been change in approach?

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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