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Biotechs up amid volatility
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April 5, 2000: 5:10 p.m. ET
Shares jump on reassuring comments from President Clinton on patent issues
By Staff Writer Martha Slud
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NEW YORK (CNNfn) - Biotechnology stocks - one of the most turbulent sectors in an already tumultuous market - rallied Wednesday after President Clinton reassured gene-research companies that they will be able to patent their discoveries.
The Nasdaq biotech index, which tracks the performance of about 200 U.S. and European companies, finished the day up 6 percent, compared with a less than 1 percent gain for the overall Nasdaq composite index.
Last month, President Clinton and British Prime Minister Tony Blair sparked a biotech sell-off after issuing a confusing statement about making gene research freely available to researchers. Panicky investors feared the two leaders' comments meant that companies involved in the hot field of genomics - the study of the structure and function of genes - would have to give away their research.
In comments at the White House on Wednesday, Clinton said that "if someone discovers something that has a specific commercial application, they ought to be able to get a patent on it," Reuters reported.
Biotech analyst Alan Auerbach, of First Security Van Kasper, said Clinton's statements helped reassure investors.
"There was just a lot of confusion out there," he said. "I think for him to come out today and make that statement, it set a lot of investors at ease."
Biotech stocks went on a bull run last fall amid rapid scientific developments in charting the human genome. Scientists hope that by obtaining a genetic road map to the human body, they will better understand how genes function and be able to develop more effective drugs to treat a whole host of diseases.
 Genomics companies rose sharply on the news Wednesday. At 4 p.m. ET, Human Genome Sciences Inc. (HGSI: Research, Estimates) gained 16 to 97; Celera Group (CRA: Research, Estimates), which has promised to fully map the human genome by later this year, surged 40-7/8 to 114-1/2; Incyte Genomics (INCY: Research, Estimates) climbed 14-3/16 to 94-5/8, PE Corp. (PEB: Research, Estimates) rose 13-11/16 to 98-11/16 and Abgenix Inc. (ABGX: Research, Estimates) gained 18-5/32 to 148-1/32.
Other biotech stocks also gained ground. Drug maker Amgen Inc. (AMGN: Research, Estimates) added 3-3/16 to 59-5/8, while Biogen Inc. (BGEN: Research, Estimates) gained 6-3/8 to 69-1/16. Genentech Inc. (DNA: Research, Estimates) surged 10-1/4 to 149. 
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