Ms. Goldwasser: My coverage universe includes two groups ' the genomics group and the diagnostics group. 2001 was a difficult year for the genomics group. Our genomics index is down 136% year to date, reflecting investors' realization that although the genomics opportunity is enormous, it's still three to five years away. Due to the increased risk aversion after September 11, we expect to see continued pressure on the group. Our diagnostic index is down about 14% year to date outperforming the S&P, which is down about 21%. The metrics to look at when analyzing the diagnostic companies are price and volume, which continue to be very strong. We view these names as safe havens for investors.
TWST: Overall, what do you see as visibility on these companies,
particularly now with the economy coasting or diminishing a bit over the
next six months?
Ms. Goldwasser: Our view on both genomics and diagnostics has not been
changed by the economy. Our genomics universe is mostly composed of
companies that are focused on drug discovery and development, and should
not be impacted by the overall economy. We continue to look for these
companies to reach clinical milestones over the next six to 12 month
period. The diagnostic services group, for the most part, is not
impacted by the economy; patients still need to go to the doctor and get
their lab tests done. There are some areas, such as drug abuse testing,
that are negatively impacted by the economy, but these tests account for
a very small portion of testing volume.
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