Biotech valuations now nearing attractive levels

After 12 months in which the biotech sector underperformed the Dow Jones Eurostoxx 50 by some 29%, valuations are now approaching attractive levels. Prolonged underperformance has led to biotech stocks posting the worst total returns of the broader healthcare sector on the back of drug pipeline and cash woes. Jeremy Green, biotech analyst at SchroderSalomonSmithBarney, says the house has recently moved to a neutral stance on the sector, believing the current rate of decline to be unsustainable. 'The European biotech sector was the worst performer within the broader healthcare univ...