Market Performance

This section analyses the performance of the Life Sciences Sector during the quarter in the local market and in the US. It reports movements in indices and also financing information, which is compared to historical data.

The Australian life sciences sector's market performance is tracked through two indices:

1. PwC Life Sciences Index
2. PwC Life Sciences Index ex majors (CSL, ResMed and Cochlear)

Analysis is provided without the large-capitalisation stocks (majors) so the performance of smaller-capitalisation stocks can be observed.

The PwC Life Sciences Index is based on the performance of life sciences companies listed on the Australian Securities Exchange (ASX). It comprises two subsectors:

1. Pharmaceutical / biotechnology
2. Medical devices

These sectors have been classified according to the Global Industry Classification Standard. The index includes life sciences companies primarily involved in research, development, commercialisation and manufacturing of pharmaceutical and biotechnology products and medical devices. It excludes healthcare, medical software and distribution companies. Companies included in the PwC Life Sciences Index are listed at the end of each issue of BioForum.

The PwC Life Sciences Index is based on the combined market capitalisation of the listed companies and calculates the change of their value over the quarter and change over the previous year. These changes are compared to the changes in the market performance of the following indices:

• ASX All Ordinaries
• NASDAQ Composite
• NASDAQ Biotech

Different formulae are used to calculate the value of these indices and track their performance. These formulae use a combination of company market prices and a weighted average of market capitalisation. Because of these different methods of calculating value, the absolute value of the indices cannot be directly compared. Only their changes over time can be sensibly compared.