Australia has a thriving biotechnology sector and broader life sciences industry, particularly applied to medical care and human health. Deep capital markets support these industries with a healthy appetite for biotechnology and the life sciences. A recent report on the Australian healthcare and biotechnology sector by the ASX outlined a combined market cap of $111 billion for the top 100 healthcare and biotechnology stocks1.
Despite the strength of this sector, there are currently no major indices that track the entire spectrum of companies. For example, the S&P/ ASX 300 set of healthcare indices track biotechnology, pharmaceuticals, life science and healthcare equipment companies within the ASX 300, however, the vast majority of companies in these sectors are outside of the ASX 300. iQDEX's set of indices captures the full spectrum of Australian companies from early stage junior biotechnology companies through to large global pharmaceuticals. iQDEX serves as a complete benchmark for these industries in Australia.
These indices provide a balanced measure of the sector by using a modified market capitalisation weighted methodology. This method imposes an 8% cap on the weight of any one company within the index at rebalancing. For more information, please see the rules section.
iQDEX comprises of two indices:
iQDEX Biotechnology All Caps Total Return Index: Reuters Instrument Code: .IQBIOTECTR
The iQDEX Biotech All Cap index is designed to benchmark the performance of ASX listed medical biotechnology companies. The index captures all stocks on the ASX for companies operating in the biotechnology sector. This is index currently consists of 36 stocks.
iQDEX Life Sciences All Caps Total Return Index: Reuters Instrument Code: .IQLIFSCITR
The life sciences index is a benchmark for the broader industry tracking the performance of companies with medical devices, pharmaceuticals, diagnostics, etc. in addition to biotechnology. This index currently consists of 103 stocks.
Base Level: Both Indices commenced on 30 June 2015 with a base level of 100
Together these two indices will highlight the performance and activity of the industry in one platform. Highlighting early stage to developed biotechnology companies to set a standard within this high performing sector.
1 ASX, Health Care and Biotechnology Sector Profile, April 16, 2015