Researching Biotechnology Companies for the Purpose of ...



Researching Biotechnology Companies for the Purpose of Investment

Most companies sell stock to the public to raise funds for research and development purposes. Before someone invests in a company by purchasing their stock, research is done to find out more about the company.

A smart investor wants to know a lot about the company including the following:

• How much a company makes (revenue)

• How much a company spends (expenses)

• Products being made or sold by the company at this time or in the future

• If the company is involved in any costly legal battles

• If the company has “performed” well in the past

How can investors get information about biotech companies? Company websites, many investment companies, stock exchanges, and brokerages have information available about biotech companies. Many firms make recommendations about what stocks look promising and which ones don’t. A company’s annual report is often a good source of information about past performance and future expectations. An annual report describes the present state of a company’s scientific and business ventures. It also outlines the plans and expectations for the company’s future. Many companies publish their annual reports on the Internet.

Purpose: To obtain information about two companies’ business and scientific interests. This information will help you make investment decisions for the Biotechnology Stock Investment Activity.

Procedures: By using the Internet try to find information about two of the following companies. Circle the 2 companies you are researching. If you decide to invest in one or more companies not on the list, which I encourage you to do, add them to the list and circle them.

|Invitrogen |Affymetrix |Qiagen |Abbott labs |

|Gilead Sciences |Charles River Lab |VWR |Applera Corp. |

|Nektar |Genzyme |Incyte |Cytokinetics |

|Amgen |Celera |Illumina |XOMA |

|Novartis |Celgene |Onyx Pharm |DARA |

|Biogen |Imclone |Pipex Pharm |Pick your own |

|Monsanto | | |with teacher approval |

2. On a Google document, type up the answers to the following questions. Assume that potential investors will be reviewing the information. It is your goal to inform them so they may make a decision as to whether or not they should invest in the company.

a. Insert picture from company website. Give name of company using Word art

b. What are the stated long-term goals of the company? Make Bullet Points

c. List 3 of the company’s marketed products (common name), their trade names, and their applications or uses. Make a table to show this.

d. Using . Find the company stock trading symbol by clicking on “Finance Search)”. Then, using the trading symbol, find the price per share of the company’s stock. Also, print up a 3-month chart of the company’s stock performance.

e. Click on the link “News” and find a recent article that either shows that the company should be

making more or less money in the future. Write a paragraph explaining how the article might

affect stock prices. Think of yourself as a financial advisor telling your clients if they should

invest money in this company or not. Copy and paste the link at the bottom of your paragraph.

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