NEW YORK, Jan 22 – The Nasdaq said Monday it had slashed the number of companies it would include in its biotechnology index from 202 to 76, including a number of genomics companies that recently raised tens of millions of dollars last year but have since seen their share prices fall.
The change in the index will be effective Tuesday.
Among the genomics companies that will no longer be included in the index are Compugen, DeCode, Gemini Genomics, Informax, Hyseq, Large Scale Biology, Lynx Therapeutics, Rosetta Inpharmatics, and Variagenics.
Most of these companies are now trading at or near their 52-week lows, as the result of a downturn in the market.
In a statement, the Nasdaq said that securities in the index must meet minimum requirements for price, market value, and average daily share volume.
The Nasdaq Biotechnology Index, which was started in 1993, increased 23 percent in 2000.