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PRINCETON,
NJ – January 20, 2004
Waterford Advisors today released the results of its quarterly
survey of senior executives in life science and technology firms. According to
respondents, the near-term business outlook for pharmaceuticals, biotechnology,
medical devices, bio-IT and related companies is very optimistic.
“When asked to rate their firms’ current abilities in operations,
financing and investments, life science and technology executives said they’re
somewhere between above-average and excellent”, said Peter Leitner, managing
partner of Waterford. “We expected good news, but this was a pleasant
surprise.”
Survey participants were most enthusiastic about increasing revenue
and profits, to which they assigned scores of 83% and 80%, respectively (50%
would be average). Strategic investments, like alliances, joint ventures and
acquisitions, were also rated 80% while capital expenditures were 78%. The
overall business outlook, which aggregates all scores from all respondents, was
also 78%. (Read the complete report.)
“Life science firms, particularly in biopharma, tell us they’re well
positioned to deliver strong results this year, at least in the first half”,
said Leitner, “which is consistent with the anecdotal evidence we are seeing
among emerging and middle-market firms.”
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The sole area with mixed results, however, was in firms’
abilities to raise funds. Equity capital, though still favorable at 69%, was
ranked the lowest by executives, while raising debt was in line with capital
expenditures and the general outlook, at 78%.
“Equity may be the weakest link, but we think that’s the nature of
equity; it’s supposed to be precious”, said Leitner. “But it also reflects
several years of difficulty in the stock market and investor rotation out of
healthcare as the general economy improves.”
About Waterford Advisors LLC
Waterford Advisors provides corporate valuation, strategic
assessment, and professional management services to life science and technology
firms.
For additional
information, please contact:
Managing Partner Waterford Advisors LLC, (609) 951-2233
www.waterfordadvisors.com
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