Difficult times ahead for investors in biotech firms

Investors in the biotechnology sector have been warned of a rocky time ahead despite recent good ret...

Investors in the biotechnology sector have been warned of a rocky time ahead despite recent good returns. The International Biotechnology investment trust saw its NAV rise by 13.2% to 127.7p in the six months to 29 February. Its share price did even better, climbing 18.2%, while the benchmark Nasdaq Biotech index fell 10.3%, in sterling terms. Manager Kate Bingham has warned investors' expectations may be too high and the biotech market will remain volatile. She said: "Biotech indices were weak in the fourth quarter of 2003, with profit taking by investors. However, the sector rallied str...