Thanks, PB,
And keep stopping by. I was about to add all that stuff up myself, when Martin Jongmans posted an article on the Valuation thread-- also from Signals -- that did it for me:
signalsmag.com
Thanks again to Martin.
So through October, public biotech companies have harvested 23 billion in public and private offerings, while private ones have garnered 2.5 billion. I'll annualize this to ~30 billion. This presumably does not include financings that are part of alliances (i.e. equity investment from bigger partners). I'm willing to bet that bumps the total a few billion.
Now then, if we had a ball park percentage of how much of this could end up in the biotech research labs in the form of trickle, we'd have an idea of what the total market is. I have yet to get it segmented intelligently and comprehensively. At some point in the near future I'd like to put a table together about that. Then try to figure out where the trickle is going on a per segment basis. That will get us to the point of being able to do some valuation on our portfolio that is something other than gut feel and sell side analysts. Both very trustworthy sources, but I like redundancy. <g>
A big project, but worthy. I believe in the trickle thesis as much as anyone, and intend to do some of my personal investing based on what gets done here. So I will deliver on some of these promises.
Anybody have a feel for the trickle down percentage of biotech financing?
Cheers, Tuck |
