I really don't know enough about the trickle down candidates to comment sensibly - you're better off looking on Rick's thread. NBSC is a hybrid that I own (mostly just tagging after Rick) - part low-glamor trickle down stuff and part a high risk, high reward play.
I also own a little AKRN and some IVGN, and I guess IGEN is also a possible beneficiary, although clearly not a pure play.
Thinking broadly, biotechs can spend money on vanilla lab equipment, fancy lab equipment (MALDI-TOF mass spectrometers and the like), reagents, CRO's, subscriptions to INCY-type databases, combo-chem companies, high-throughput screening companies and equipment, biochips.
There is also some lag to be considered, and of course pharma research spending overall still dominates that of the biotechs. Maybe we'll see some tool and service companies that up to now have catered mainly to pharma (like INCY and ABSC) reaching out further to biotech companies.
This may sort of be a rising-tide-lifts-all-boats sort of environment, in which case either a broad basket of smaller companies or just going with a few big companies is the sensible way to play.
Peter |
