ATPblog

Going against the Grain: Is it time to take a stand against “Asset Favoritism”?

In his 2004 Chairman’s Letter at Berkshire Hathaway, Warren Buffet offered sound advice to those trying to find the best time to invest in equities: “be fearful when others are greedy and greedy when others are fearful”.   For equity investing, this strategy seems to work very well.  Selling at the end of a long bull run, just as others are piling in on the back of historical gains was the right strategy in 2008.  Buying up distressed assets at a time when most potential purchasers are too fearful to move, keeping prices depressed, was surely the right strategy in the years that followed the crash.  But is going against the grain also a winning strategy for private equity investors in high-risk biotech ventures?

Is Pharma's Perfect Storm Biotech's Greatest Opportunity?

Many folks within pharma lament the current challenges and look back to a gilded era when blockbusters provided rivers of cash flow and supported growth based activities - both R&D and marketing. And yet, could this present biotech's greatest opportunity as an industry?

SuperGen Acquires Astex: The Biotech Funding Relay Race

Last week witnessed an interesting M&A deal between SuperGen and Astex. Here, we look at investor returns and wonder what could be in store for the enlarged company?

Biotech Survival Lessons from the Inuit

I've recently been following the BBC's excellent "Human Planet" series. Last week's program was a fascinating insight into how the Inuit of the Arctic have adapted human existence, over centuries, to live in one of the harshest environments known to man. Why mention this on a blog about biotech funding?

Does R&D Pay? (journal article)

This month we highlight a paper published earlier this year in Drug Discovery Today. The article, "Does R&D Pay?" looks at the effectiveness of different R&D strategies. This is achieved by looking at 10 year historical financial performance of different types of drug firms (big pharma, specialty/ generic, and biotech).

And it leads to some interesting conclusions about where investors might get the best return...

The Biotech Life Cycle - Seattle Revisited

BMS is currently in discussions to buy Zymogenetics, from Seattle. While some will mourn at the loss of another regional leader, we see things a different way.

A recent article from the Seattle Times highlights why recycling is so important to building biotech into a

Market Access: How Does it Affect Biotech Funding Prospects?

Does it work?  Once upon a time it was sufficient to determine if a drug, diagnostic or device delivered some benefit.  A significant effect in a randomized, placebo-controlled trial was necessary and sufficient to identify efficacy.  Combined with demonstration of safety, this was enough to garner regulatory approval and with it a sizeable profit. But not any more.

Biotech Funding: Feel a Breeze From the IPO Window?

What do the following biotech stocks have in common - Anthera (NASDAQ:ANTH), Ironwood (NASDAQ: IRWD), Aveo (NASDAQ:AVEO), NeoVacs (EPA:ALNEV) and Nupathe (NASDAQ:PATH)? They are all biotech companies that achieved fundings through IPOs in 2010. And ALL are underwater compared to

The New Reality Starts to Hit Home

We all know the mantra of the post-credit crunch pharma and biotech world – lean, mean and focused in the era where cost-effectiveness is king. The message is that we have learnt from our mistakes of the past, embracing now instead strategic flexibility and a global focus on delivery of healthcare to the individual. The industry has made lots of resolutions – but is it walking the walk as well as talking the talk?

Value creation: Are pure-plays better than hybrids?

In this research note, we consider the value and merits of using a pure-play business model (i.e. biotech R&D pipeline, or cash generating services business) against the hybrid approach. Several case studies from the market suggest there may be greater value in focus.