Just when Australia’s roughed up bio tech sector was in need of a boost, Silviu Itescu from stem cell pioneer Mesoblast sends positive reinforcement by selling $58.5 million in stock to U.S. pharmaceutical power house, Celgne Corporation.
This exchange for Mesoblast and the Australian biotech sector is very important. It will display big pharma is not content on relying on its in- house research to fill its outlet of possible treatments.
It has made an early payment to obtain the intellectual property of a leader in stem cell research. In the ways of the biotech world it is extremely complicated and risky but the gains can be enormous. For instance recent information on Celgene by analysts at Morning star stated its explosive drug Revlimid has significant growth prospects as the market expands from $US8 billion to $US16 billion by 2019.
Shareholders in biotech stocks tend to get dazzled by the blue sky and assume the optimistic scenarios will succeed. We can only hope that the biotech industry continues to push for a better future to help aid companies in producing new drugs to help treat patients with sever illnesses