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Our Bureau

Mumbai , April 30

INVESTORS in biotechnology companies will soon have a tool to hedge their price risk. Because of their perceived high growth potential and earning prospects, biotechnology companies have always been the centre of attention, especially investor attention.

No wonder, huge investments are flowing into biotech company stocks. Because these stocks carry an inherent price risk, need for hedging the risk has always been felt.

Futures contracts designed to hedge risk on investment in biotech companies may soon be offered by Nasdaq Stock Market Inc and the Chicago Mercantile Exchange Holding Inc. Both have promised to develop futures contracts for biotech scrips.

With more than 150 biotech companies trading on the Nasdaq, the exchanges are expected to launch the E-mini Nasdaq Biotechnology Index futures contracts in September, according to reports.

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Nasdaq, CME to offer biotech futures

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