The supposedly innovative industry is proving to be a grave for investor money on the Swiss stock exchange. What are the reasons? And: will there be a trend reversal soon?
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Biotech companies use new technologies to develop drugs from cells and microorganisms.
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It’s a disaster. While the Swiss benchmark index has gained over 20% in the current year (measured by the SPI), the local biotech shareholders are licking their wounds. The market value losses of the rather small-capitalized companies are huge. Eleven out of twelve stocks show losses – with some around three quarters of the value vanished into thin air (see Table 1). To the chagrin of many co-owners, the downward trend is a multi-year trend (see Table 2). Paul Verbraeken from the analysis company Research-Partners started his comparison in May 2018. At that time, Polyphor was the last biotech IPO in Switzerland.
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