Biotech's 2009 Movers & Shakers: BioBuzz

BOSTON (TheStreet) -- Before we plunge into 2010, let's take a quick look back at the biotech sector in 2009. It was an okay year, certainly not a great one overall. The Nasdaq Biotechnology Index (NBI) closed 2009 up 16%, rebounding nicely off the March lows but still under-performing the broader indices.

The healthcare segment of the S&P 500 rose 18% in 2009 compared to the 23.5% gain in the overall index.

Biotech's performance was definitely hurt by the lagging returns of the sector's profitable, large-cap components. Only Biogen Idec(BIIB) (12% return in 2009) managed to close higher. Genzyme(GENZ) was the laggard with a 26% loss for the year. Amgen(AMGN) closed 2009 down 2%; Gilead Sciences(GILD) lost 15% and Celgene(CELG) finished flat.

The big gains in 2009 came from small-cap biotech stocks, which rebounded strongly from the huge drubbing of 2008. Vanda Pharmaceuticals(VNDA) was the top-performing biotech/drug stock in 2009, returning 2,150% spurred by the surprise approval of the company's schizophrenia drug Fanapt last May.

Rounding out the Top 5 best-performing biotech/drug stocks for 2009: Human Genome Sciences(HGSI) (+1,342%), Keryx Pharmaceuticals(KERX) (1,034%), Compugen(CGEN) (1,027%) and Opexa Therapeutics(OPXA) (900%).

On the losing side of the ledger, Repros Therapeutics(RPRX) lost 92% of it value in 2009, stung by drug development setbacks. Other big losers included Star Scientific(CIGX) (-82%), Sequenom(SQNM) (-79%), GTC Biotherapeutics(GTCB) (-77%), and GTX(GTXI) (-75%). [Note: I excluded stocks traded over the counter and on the Pink Sheets from these lists.]

The biotech sector enters 2010 with a lot more capital at its disposal, thanks to a plethora of fund raising during the latter half of last year. Overall, the healthcare sector raises just under $18 billion in new public equity and $49 billion in new public debt, according to CapitalIQ.