Drugs & Biotechnology Overview

Consistently strong growth of around 15% is a result of the rapid innovation and massive investment of capital into the US biotechnology and drugs market. The relentless technological advancement within the sector shows no signs of slowing with the biotechnology market set to reach a value of $80 billion by 2008.
Product sales are the most abundant revenue source in the market, although funding initiatives in terms of venture capital are increasingly important to the smaller players in the market. Whilst the markets innovative approaches to discovery offer great potential, the investment community and many strategic investors have been very cautious with recent investments, focusing on late stage development opportunities and products close to approval. However, the introduction of a zero capital gains tax rate on entrepreneurial equities could spur biotech investment into 2005.

source:www.investor.reuters.com