Human Genome Sweepstakes: A Sampling of Players
Here’s a look at some biotech companies involved in human genome research and the development of drugs. Most of the companies are unprofitable and many have generated scant sales, but the sector has stirred tremendous investor enthusiasm because of the potential for scientific breakthroughs. Even with their recent rebounds, many of the stocks have come way down from their spring peaks. Which stocks do some of the sector analysts like? Michael Murphy, editor of the California Technology Stock Letter, recommends two of the best-known companies, Human Genome Sciences and Celera Genomics Group. “They both have so much intellectual property and so many big ideas,” he said. “They’re not cheap, but investors can tuck them away for three or four years and do quite well.” Jim McCamant, editor of the Medical Technology Stock Letter, said Isis Pharmaceuticals and Chiron, two stocks that have been “pretty much ignored” amid the hoopla, could be among the juicier investments. “I’d wait for price dips on a lot of the other genomics stocks,” he said. Genome breakthrough stories on A1 and A12.
Company: Celera Genomics
Ticker symbol: CRA
Headquarters: Norwalk, Conn.
52-week high: $276.00
52-week low: $7.06
Monday close and change: $114.00, -$13.00
Market cap (in millions): $6,407
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The genomics unit of PE Corp. says it has completed a draft map of the human genetic code, the industry’s biggest breakthrough yet. Expected to lose $1.69 a share in its fiscal year ending this month.
Company: Isis Pharm.
Ticker symbol: ISIP
Headquarters: Carlsbad, Calif.
52-week high: 39.00
52-week low: 3.88
Monday close and change: 13.25, +38 cents
Market cap (in millions): 471
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Seeking to develop treatments for AIDS, cancer, asthma and other illnesses using anti-sense technology. Because anti-sense stops protein replication, the genetic map is seen as a boon to companies such as Isis that can now theoretically home in on their targets.
Company: Chiron
Ticker symbol: CHIR
Headquarters: Emeryville, Calif.
52-week high: 71.03
52-week low: 20.00
Monday close and change: 47.94, +3.88
Market cap (in millions): 8,613
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Seeking to develop products to treat AIDS, cancer, heart disease and hepatitis using gene therapy. One of the sector’s few companies already in the black, Chiron is expected to make 78 cents a share in calendar 2000.
Company: Axys Pharm.
Ticker symbol: AXPH
Headquarters: So. San Francisco
52-week high: 20.25
52-week low: 2.69
Monday close and change: 5.50, +13 cents
Market cap (in millions): 194
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Specializes in designing drugs to target a specific protein, such as a gene involved in Alzheimer’s. Expected to lose 89 cents a share in 2000.
Company: Lexicon Genetics
Ticker symbol: LEXG
Headquarters: The Woodlands, Texas
52-week high: 27.13
52-week low: 8.00
Monday close and change: 25.63, +1.38
Market cap (in millions): 1,218
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Traps genes to see how they mutate. This “functional genomics” company has a major deal with sector heavyweight Millennium Pharmaceuticals and will benefit from the expected surge in gene-based research, Murphy said.
Company: Hyseq
Ticker symbol: HYSQ
Headquarters: Sunnyvale, Calif.
52-week high: 139.50
52-week low: 2.75
Monday close and change: 38.75, +3.94
Market cap (in millions): 514
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Identifies therapeutic targets for its partners using anti-sense technologies, like competitor Isis. Expected to lose $1.11 a share in 2000.
Company: Incyte Genomics
Ticker symbol: INCY
Headquarters: Palo Alto
52-week high: 289.06
52-week low: 16.44
Monday close and change: 89.31, -2.63
Market cap (in millions): 2,840
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Markets genomics-related databases, software and services to the leading drug companies. One of the industry’s original companies, Incyte has sequenced numerous genes.
Company: Visible Genetics
Ticker symbol: VGIN
Headquarters: Toronto
52-week high: 119.13
52-week low: 8.88
Monday close and change: 39.94, -5.56
Market cap (in millions): 590
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Makes automated DNA sequencing systems and diagnostic kits for analysis of genes related to disease. Competes with PE Biosystems (a unit of PE Corp., like Celera).
Company: Human Genome
Ticker symbol: HGSI
Headquarters: Rockville, Md.
52-week high: 232.75
52-week low: 19.38
Monday close and change: 143.38, -2.00
Market cap (in millions): 602
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Seeking to bring to market drugs based on copying helpful proteins produced by human genes. Has 400 to 500 patents on genes, proteins and their medical relevance, according to Murphy. “When they came public [in 1993], I said it was like buying Coca-Cola in 1907-it was unstoppable, and it’s still unstoppable,” he said.
Company: Millennium Pharm.
Ticker symbol: MLNM
Headquarters: Cambridge, Mass.
52-week high: 158.00
52-week low: 16.38
Monday close and change: 121.50, +1.94
Market cap (in millions): 11,116
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Gene research company working on treatments for heart disease, leukemia and other illnesses. Has assembled an array of genomics and drug development technologies, putting it in position to discover its own genes and rapidly develop drugs to fit those genes, according to Murphy. “They look at a specific disease, such as obesity. So they have fewer genes than Human Genome, but everything they have is relevant.” *
Sources: Times research, Bloomberg News
