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About this author
Zack Lynch is author of The Neuro Revolution: How Brain Science Is Changing Our World (St. Martin's Press, July 2009).
He is the founder and executive director of the Neurotechnology Industry Organization (NIO) and co-founder of NeuroInsights. He serves on the advisory boards of the McGovern Institute for Brain Research at MIT, the Center for Neuroeconomic Studies, Science Progress, and SocialText, a social software company. Please send newsworthy items or feedback - to Zack Lynch.
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May 20, 2005

Neurotech Index - A Public Market Benchmark for the Neurotechnology Industry

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Posted by Zack Lynch

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About the Neurotech Index
To help investors gauge the overall welfare on the public markets of companies specializing in neurotechnology, NeuroInsights has introduced NeuroInsights' Neurotech Index in the recently released strategic investment and market analysis report on the neurotechnology industry.

Index Performance
In 2004, the Neurotech Index was up 27.1% compared to respective gains of 10.9% and 8.6% for the S&P 500 and the NASDAQ Composite Index. The Neurotech Index also outpaced the NASDAQ Biotechnology Index, another life-sciences-oriented measure of the public markets, which grew by 5.1% in 2004.

Index Calculation
The Index is an equally weighted index of 30 companies that have a significant percentage of their current and future profits tied to neurotechnology, including neuropharmaceuticals, neurodevices or neurodiagnostics. Large conglomerates, even those with significant neurotechnology products, are excluded from the Index. It will thereby offer insight into the way the public markets perceive the future promise of neurotechnology and its current state of development.

At the beginning of 2004, 26 companies qualified for inclusion in the Neurotech Index. New neurotech IPOs in the ensuing months have increased the number of index companies to 30. The index is based on a value of 100 as of December 31, 2003, and is calculated using an equal-dollar weighting methodology designed to ensure that each security is represented in an approximately equal dollar amount.

The index is rebalanced semiannually, on the last trading day in December and in June, at which time the number of companies included in the index may change based on changing conditions in the industry, such as initial public offerings and M&A activity. The number of whole shares of each component stock is then adjusted so that each company is again represented in equal dollar amounts and then adjusted by a divisor, if necessary, to ensure continuity of the index.

For more information about the companies covered in the NeuroInsights' Neurotech Index please visit www.neuroinsights.com.

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