Biotech Toolmakers to Benefit from Obama
By all indications, the stimulus package being voted on today includes significant increases for NIH funding.
http://www.genomeweb.com/node/910396 (might require registration).
"The Federal economic stimulus package that awaits both Congress and newly-inaugurated President Barack Obama includes billions of dollars in new funding for the National Institutes of Health and other research agencies, as well as a major funding plan for a health information technology program.
The stimulus package, which currently is in the US House of Representatives, offers $3.5 billion to NIH, $460 million for renovation at the US Centers for Disease Control and Prevention, a total of $20 billion to back health information technology initiatives, and billions for other agencies that fund biomedical research and genomics, according to the House Ways and Means and Appropriations Committees.
In its current draft, the package seeks $1.5 billion to fund NIH research and $500 million to implement a repairs and improvement plan for NIH campuses. Another $1.5 billion in the bill would go through NIH to renovate university research facilities and “help them compete for biomedical research grants.”
NIH funding has seen only very modest funding increases over the past few years. Who benefits from this? Generally the pick and shovel providers of biotechnology, whose sales into the research committee are significantly influenced by levels of acedemic spending. Here is a list from an index maintained by GenomeWeb
BDX Becton Dickinson
CLDA Clinical Data
DCGN DeCode Genetics
GHDX Genomic Health
HLCS Helicos BioSciences
LIFE Life Technologies
MGRM Monogram Biosciences
MYGN Myriad Genetics
ORCH Orchid Cellmark
PBIO Pressure BioSciences
ROSG Rosetta Genomics
I have many of these in my CAPS port already, as I think this is the best way to invest in biotechnology (slow and steady rather than shoot for the moon). Time to add a few more. I want to keep my active picks ~50, so this is where I'll seek additions. Could be a time before these pay off though, and massive pharma cutbacks haven't helped the industry (though the outsourcing movement arguably does).
Community Analyst Team