Biotech revisit (page 1 of 3)

US Stocks

Just as genomics is the attempt to decipher all the genes in an organism, proteomics, in its simplest definition, aims to uncover all the proteins and their functions. Since genes are the blueprints for proteins, which in turn are the main players in most of the body's functions, it is a logical progression. Indeed, there is no mistaking what proteomics promises - a revolution in medical science with implications that far surpass those of genomics.

Sounding like the genomics guru of yesteryear. Proponents of proteomics declare that an understanding of proteins will reveal the underlying mechanisms of disease, leading drug makers to treatments that would remove causes rather than mask symptoms. Doctors will be able to tailor treatments to specific patients.

For all its promise, proteomics remains strapped by limitations. The technologies to isolate and characterize proteins are still cumbersome. But the completion of the human genome does give it a starting point. Many new technologies have sprouted in the past few years that make it easier to find and identify proteins. The following are companies that are involve in proteomics:

Celera Genomics Group(CRA US US$25.60, CSFB rating : Buy) - they brought you the first assembly of the human genome, and are trying to repeat the feat on proteomics.

Myriad Genetics(MYGN US US$44.94 CSFB rating Buy) - develops and commercializes genes involved in major common diseases including cancer, cardiovascular disease. Its ProNet technology is used to identify proteins that may lead to the development of new therapeutics.

Applied Biosystems Group(ABI US US$27.05 CSFB rating Buy) - develops and markets analytic instruments to the life science industry.

US Technology

On a week-on-week basis, the NASDAQ Composite Index retraced 1.8% to 1671.

Despite a 96% drop in profits, Intel Corporation (INTC US $24.15 CSFB rating: HOLD) met lowered expectations for 3Q01. Intel earned $106 million during the September period versus the comparable period last year of $2.51 billion. 3Q01 EPS (excluding acquisition costs) of $0.10 a share was inline with analyst expectations. Sales slipped 25% to $6.5 billion from $8.7 billion. Given the state of the economy and the slow pace of sales, it was inevitable that the firm underwent a tough quarter. To add, Intel noted that its profits may continue to be weak in the chip business due to the ongoing aggressive price war with rival Advanced Micro Devices (AMD US $9.19 CSFB rating: BUY). Looking ahead, Intel said it expects its revenues for the fourth quarter to remain weak (between $6.2 billion and $6.8 billion). With the Windows XP coming, the company's latest generation Pentium 4 chips and the upcoming holiday shopping season, we believe these events may help Intel to maintain its market share and revenue growth. For investors with at least a 12-month investment time horizon, we suggest accumulating the stock only on price weaknesses below $23.00.

EMC Corporation (EMC US $11.51 US CSFB rating: BUY) posted 3Q01 sales that fell 47% to $1.21 billion from $2.28 billion a year ago. EPS (excluding restructuring charges) of -$0.12 a share was bigger than the anticipated loss of -$0.05 a share. EMC suffered from reduced demand due to the slowing economy, IT spending weaknesses, and market share loss to IBM (IBM US $102.65 CSFB rating: HOLD), and Hitachi Ltd (HIT US $72.50).

As a consequence, EMC is taking steps to cut costs.