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Four analysts, two experts and top management from thirty-seven sector firms examine the Biotechnology sector in this special 179-page issue from The Wall Street Transcript, available at (212/952-7433) or http://www.twst.com/info/info423.htm

TWST: Michael, what would you include in a discussion of biotechnology and, by the way, is life sciences perhaps a better description of the sector? I hear that used a lot.

Mr. King: That’s a term that we use at Robertson to encompass everything. The only area that we would not include under our purview would be ag biotech, but we opened it up to life sciences, because as the other panelists have so succinctly put it, it’s a lot more than the traditional “clone a gene, make a drug” kind of approach. It’s using an understanding of biology in the best way possible. Genomics fits right in with that attempt to understand the basis of disease at the molecular level and then design the best drug, based on that knowledge. That drug may be a protein, it may be an antibody, or it may be a small molecule, and you’re seeing a bit of a transformation in the pharmaceutical industry in their understanding and use of biology and genomics, as well as small biopharmaceutical companies that don’t fit the traditional mode that investors were used to 10 or even five or so years ago. It was all about proteins; now it’s about the understanding of biology at the molecular level using the best science available to design profitable drugs.

TWST: Michael, are there any products that have experienced unexpected delays in clinical trials, or that have come to market and, for one reason or another, failed to meet your expectations?

Mr. King: The one product that I would point out is Amgen’s (Nasdaq:AMGN) Aranesp, which has become a “waiting for Godot” type of story. Aranesp is the successor molecule to Amgen’s Epogen, which is a $2 billion plus product for the stimulation of red blood cells in patients who are on dialysis and experience anemia. Aranesp, a next-generation version of that drug, was filed for approval in the late part of 1999, was due for an FDA approval late in early 2001, and expectations got ratcheted down again to the first half of 2001. Now here we are rapidly approaching the fourth quarter, and that still hasn’t happened. That has been probably the single most visible product that the whole biotech world is looking at.

TWST: Michael, how do you see investor sentiment?

Mr. King: I see people basically cautious. There’s a lot of trepidation. The commentary I got back last week was that people don’t believe that the rally will last. Someone made the comment to me that, oh gee, everyone is saying that we’re going to get a rally into the year-end, and that probably means that it won’t happen. Well, all I can say is 10 years out of 10 it has worked. So I think that people just have to get over it. I think we’ve all pointed out that biotech offers investors growth in a no-growth market. It seems to me to be irrational, illogical, and contrary to one’s job security to continue to hope and expect that tech will make a comeback, despite the fact that the tech numbers keep going down. Conversely, the fundamentals are as good or better than they’ve even been in biotech. It just seems like people are going to have to move on. So I think that the biotech sector continuing to block and tackle will help. I think the nomination of an FDA commissioner who looks like he can get through the confirmation process will provide us with a relief rally. I think the final approval of Aranesp by Amgen will also provide us with a positive psychological catalyst. So the elements are there; we just need the spark to get the fire going, and it could be any one of the things that I just mentioned.

This special issue includes:

1) Biotechnology - In an in-depth (13,900 words) Analyst Roundtable, Peter Drake, Managing Director at Prudential Securities, Inc., Mary Ann Gray, Analyst focusing on both public and private healthcare investments at Federated Kaufman Fund, Michael King, Jr., Managing Director at Robertson Stephens and Elise Wang, Managing Director at Salomon Smith Barney, examine the outlook for the sector including new approaches to diseases, outlook for tools and technology companies and share specific stock recommendations.

2) Searching for Executive Leadership in Biotechnology - In an in-depth (2,600 words) Expert Interview, Robert Hennessy, Managing Director at The Hennessy Group, examines the outlook for the sector.

3) The Biotechnology Transformation - In an in-depth (2,500 words) Expert Interview, John Rhodes, Managing Partner for Pharmaceuticals and Life Sciences at Deloitte & Touche, examines the outlook for the sector.

4) The TWST confidential Off-The-Record survey of management performance at nineteen sector firms asked market insiders about the ability of management teams to create shareholder value.

5) CEO and Sponsored interviews (average 2,500 words). Top management of thirty-seven sector firms examine the outlook for their firm and the sector.