The Japanese biotech industry has boomed on the back of new legislation from the government. Harver Group is looking for profits from the JASDAQ; the Japanese version of the NASDAQ. They plan to take a position in an Index Fund on the JASDAQ.
As Prime Minister Shinzo Abe revitalizes the Japanese economy, he is investing in cellular regeneration technologies. The government is creating bills for regulatory approval of cell based products and created new research frameworks. The government is also funding a $1.12 billion study on a new type of stem cell that is not harvested from embryos. The government is looking to invest in new industries to limit their dependence on the automotive industry. Japan´s new cell technology industry has boomed this year Japan Tissue Engineering Co, which manufactures skin tissue and cartilage from cultures is up nearly 500% and ReproCell Inc. the first company to acquire a license to make iPS, a new type of stem cell, has soared nearly 300% since its IPO in June.
Analysts at Harver Group have targeted the JASDAQ, a smaller Japanese exchange similar to the NASDAQ in the United States. Like the NASDAQ the JASDAQ is dominated by technology firms. More specifically they have targeted the Sumitomo Mitsui JASDAQ-Top 20 Index Fund, which has climbed more than 350% in the past twelve months. With new legislation allowing for cell based products, investors and the government has been pouring money into research and development. Harver Group analysts forecast continued growth of the Sumitomo Mitsui JASDAQ fund to reach 500% by the end of the year. They have targeted a sizeable position in the fund.
Shinya Yamanaka, the first Japanese person to win a noble prize for medicine in 25 years, developed a technique in mice, reprogramming later stage cells into stem cells. This new technique has been given approval by the Japanese Health Ministry to conduct the first clinical trials on humans with stems.
Nathan Marx, Head of Investment Analysis at Harver Group commented “With the current economic climate in Japan, there is a lot of excitement about small tech and medical companies, especially innovative ones. This represents a huge opportunity for investment that we simply can’t afford to miss”.