News - Where Biotech Belongs
Switzerlands burgeoning biotech industry continued to gather momentum in 2019 as revenues once again enjoyed healthy year-on-year growth.
The Swiss Biotech Report 2020[pdf] to which the Swiss Stock Exchange
is a key contributor - provides a comprehensive outlook on the domestic biotech market and showcases some of the game-changing innovations
that currently define the sector.
As one of the worlds leading biotech and life sciences stock exchanges and the listing destination of choice for some of Europes
largest biotech companies the Swiss Stock Exchange is an industry thought leader in the sector, and sits on the steering committee of
the Swiss Biotech Association. Moreover, Switzerlands deep investor pool, strong banking system and industry expertise make it an
appealing market for biotech firms looking to list.
The Index Outperformer
Conscious of the importance of biotech in Switzerland, the Swiss Stock Exchange developed its own sector-specific index the Swiss
Bio+Medtech Index (SXI) in 2004 to increase the industrys visibility. Its excellent track record speaks for itself. The SXI has
produced returns of 59% over the last five years, outperforming both the Swiss Performance Index
(31%) and the NASDAQ Biotechnology Index (35%). This is indicative
of the calibre of the companies listed on the exchange.
The risk-returns and heightened volatility of biotech securities are well documented, although investors on the SXI have been
compensated for their risks. Relative to the NYSE Arca Biotechnology and NASDAQ Biotechnology indices, the SXIs risk-return
profile continues to be very attractive. The Swiss Stock Exchange provides a number of access channels for investors to trade
biotech securities. For instance, exposures can be facilitated through either investing directly into the single stocks of public
biotech companies or through other listed products.
The Swiss Stock Exchange, for instance, offers exposure to biotech companies via two listed ETFs and six investment funds. That
there are more products as well as greater assets under management (AuM) in the investment funds suggests that Swiss investors
prefer actively managed - rather than passive exposure - to the biotech industry, in contrast to the wider market transition
Breaking through with innovation
The Swiss Stock Exchange is synonymous with innovation. Through its «Stage Program», the exchange helps listed
companies enhance their market presence and establish appropriate valuations through research coverage. Investors often have
high expectations but can be very sensitive to news around corporate events, which can result in biotech stocks suffering from
The Stage Program was created to increase
the provision of information on companies available to the market in a targeted manner. Two biotech companies Addex Therapeutics
and Newron Pharmaceuticals are currently part of this programme and we expect others to follow.
To learn more about the advantages we offer for equity issuers, you can watch our
video or read our
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