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

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To: scaram(o)uche who wrote (231)7/27/1998 2:51:00 PM
From: aknahowRead Replies (1) of 4974
 
Rick, until the cost of development goes down, coverage, price, total capitalization and other B.S. factors will rule.

Without successful science a biotech will. of course, fail even with, coverage. But science alone is not enough to sustain a biotech through the many years the development process will take. Multiple deals with a multitude of devils are the price required to continue in existence. Those with coverage and a better price chart will raise capital at a lower cost.

The coming, liquidations, consolidations and redeployment of funds by DuPont and Merck will, IMO, save the sector this time around but the core problem of development cost will probably not be resolved.

BTW, I have purchased various tape packages in the past and I was impressed with the value of the Informed Investors Forums.

The topic interest me in part that I used to work in a field where new entities were started with zero capital. This model no longer works and almost no new ones have been formed in the last 20 years, that became successful. In addition I have been told that few analyst have much interest in how a biotech company will finance itself, and that this question has never been raised in meetings but rather the company was asked if the firms could be of assistance. This shocked me as I believe that question is important in any industry but even more critical where companies can't expect to obtain routine lines of credit nor do a standard I.P.O.
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