Replicon Pharma Portfolio Outperforms Benchmark Index Fifth Year in a Row
29-01-2008,

Replicon Medical Development Fund (MDF) beats Nasdaq Biotech Index return for the fifth year in a row. During last 12 months, the return of the MDF portfolio was minus 0.97 per cent compared to Nasdaq Biotech Index return of -1.25 per cent. Although turmoil in the stock markets in January 2008 consumed most of the abnormal returns, the overall performance last year confirms that conducted fixed investment strategy can consistently create abnormal returns, says Arsi Rosengren, Senior Manager of Replicon Group.

Replicon’s Medical Development Fund (MDF) consists of listed shares chosen from global drug development sector (total investment universe some 500 companies). We have increased the emphases of European stocks in the portfolio, but still most of the selected companies are listed on Nasdaq Stock Exchange, New York. Currently there are some 170 biotech companies in Nasdaq Biotech Index main list (NBI).

Our strict selection process means that only those pharma development companies that conduct very sound financing strategy and possess good quality R&D pipeline have a possibility of being accepted to MDF. On top of these relatively obvious selection criteria there are some other undisclosed selection criteria that facilitate the out performance of MDF as a whole. All in all a portfolio of selected drug development companies should yield superior returns in the long run compared to the Benchmark as has been the case during last 5 years (see previous articles on MDF (or RBV) published on 29th of Jan, 2004, 29th of Jan, 2005, 29th of Jan, 2006and on 29th of Jan, 2007). See also Performance report 01/2008.

Replicon provides advisory services related to MDF portfolio only for professional institutional investors. Currently this advisory can be based on consultancy or on private equity fund arrangement. In the future, it is also possible that Replicon will create a special mutual fund in line with Finnish Mutual Funds Act (29.1.1999/48, as amended).

For further information, please contact:
Arsi Rosengren, +358-40-503 3553
arsi.rosengren@replicon.fi
or
Petteri Hirvonen, +358-50-552 9633
petteri.hirvonen@replicon.fi

About Replicon

Replicon Group is an independent corporate finance, consulting and asset management advisory house for growth companies and growth investors. Replicon provides strategic and financial solutions that facilitate business activities, efficiency, and increase profitability of corporations and other organizations. Our core competence is in the corporate solutions that facilitate and govern growth of businesses based on innovation. An important part of our activities is continuous learning. We want to find and develop most suitable solutions to our customer needs. Replicon Group’s special focus areas are Life-Science and ICT/Mobile sectors. In these sectors Replicon provides also asset management advisory. The main shareholders in Replicon Group are its key management, holding majority of the company’s shares. Replicon’s homepage is www.replicon.fi