The WellSpring Bio-Clinical Trials Index measures the performance of biotechnology companies that have at least one major drug therapy or medical device currently undergoing either a late stage Phase 2 or a Phase 3 clinical trial. The equal dollar-weighted index is comprised of 22 public companies. (WHC Components)
“PHLX today reaffirms its leadership in Sector Indexes by launching the WellSpring Bio-Clinical Trials Index,” said PHLX Vice President of New Products, Daniel Carrigan. “This marks the beginning of an extensive range of innovative PHLX products in the Health Care / Life Sciences Sector that observe a spectrum of services. The US seeks a sustainable health care system for every American that respects quality of care, services, choice and value. Accordingly, we intend to be at the forefront of financial products that address a sector that has grown to nearly 16% of the U.S. economy,” added Carrigan.
“ The Clinical Trials Index is comprised of some of biotech industry’s most exciting and promising young companies,” said WellSpring CEO, Sam Katz. “Among these are Isis Pharmaceuticals (ISIS), a company using antisense therapies to prevent the production of proteins involved in diseases like colitis, and Dendreon (DNDN), developing a therapeutic vaccine called Provenge, for the treatment of prostate cancer. This drug that has been cited twice in Wall Street Journal editorials urging the drug’s immediate approval by the FDA,” said Katz. “We anticipate that the Clinical Trials Index will provide an excellent proxy that measures the performance of promising biotechnology companies at a critical juncture in their evolution,” he added.
Clinical trials are a critical part of the drug or therapeutic development process. The component companies include those that study prevention options; new treatments or new ways to utilize existing treatments; new screening or diagnostic techniques, or other options for improving the conditions of patients facing a range of medical conditions. Currently, more than 8,000 clinical trials are underway according to the National Institutes of Health. Phase 2 trials test the efficacy of drugs. Phase 3 trials assess the range of potential adverse reactions experienced by patients. The data produced from clinical trials determine whether a therapy or treatment receives approval by the U.S. Food and Drug Administration.
In conjunction with the launch of the Clinical Trials Index, WellSpring has issued a detailed report introducing the index and detailing its components, the importance of clinical trials and explaining the maintenance of the index. A copy of the report can be obtained on the websites of both the PHLX and WellSpring BioCapital Partners.
For more Information: WHC Brochure, Research Report, Strike Price Memo, Components and Specifications
