Biotechnology Value Fund, L.P. Message Board

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Biotech / Medical : Biotechnology Value Fund, L.P.

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To: scaram(o)uche who wrote (965)	10/2/1999 1:59:00 AM
From: RWReeves	Read Replies (1) of 4974

50-100x may be too ambitious Imo, since it requires a multi-year string of winners, infrastructure and market development and consistently good IP, and the ability to avoid a munch in the transition. Even AMGN is a munchable, albeit for only a few. I also believe all the partnering has given away much of the upside many companies have in the form of a call to big brudda. I do believe there are such companies but all of them are private at the moment, which does you almost no good. I say "almost" because it is not out of the realm of possibility to get your hands on some stock through private deals, vc, consulting and other relationships. In other words, I would say the first 10-50x and more happens in the march to IPO and the second stage 5-20x happens post IPO. That's consistent with the risk-adjusted cost of capital theory also. The public, as has been amply pointed out on this thread and elsewhere, isn't all that generous in valuing biotech compared to big pharma. I take it search is consistent with your other interest to identify the second tiers that can make it to first tier without additional (dilutive?)financing? RWR

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