Germany's Neuer Markt Shake Out

The Neuer Markt's fall from grace is more than a reflection of the global market slump. Having soared faster and higher than most other markets, Germany's growth exchange is now suffering the worst. And its recovery is likely to take longer.

The Neuer Markt—Germany's equivalent to Nasdaq—was launched in 1997, just in time to catch the first real global wave of enthusiasm for high-tech, high-growth stocks. With its newly-listed IT, media, telecoms and biotech stocks—the latter encouraged by the German government's huge investment in biotechnology, through its BioRegio program—investors loved it. (See "Germany's Growth Story", START-UP, February 2001 Also see "Germany's Growth Story" - Scrip, 1 February, 2001..) Company valuations soared through 1999 and 2000 as German investors, including many retail players making significant equity investments for the first time, clamored for a piece of the action.

German biotech companies including MorphoSys AG , Sygnis Pharma AG , Medigene AG , GPC Biotech...

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