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Biotech / Medical : Biotechnology Value Fund, L.P. -- Ignore unavailable to you. Want to Upgrade?

To: scaram(o)uche who wrote (71)	3/12/1998 10:26:00 AM
From: aknahow	Read Replies (1) \| Respond to of 4974

Rick, thanks. I am intrigued by this thread. The, "no one cares," situation can be disconcerting and in the case of limited partnerships becomes a source of potential danger as it becomes more difficult to convince the partners that the strategy will eventually pay off big. Do you have any idea on how much of the money Lampert manages is his own?

To: scaram(o)uche who wrote (71)	3/14/1998 1:28:00 AM
From: Vector1	Respond to of 4974

Rick, In general I agree that the market is undervaluing research programs at a number of biotechnology programs. IMO given the highly publicized failures over the past few years the discount rates for compounds in Phase I and Phase II have gone up substantially. There is a view among big pharma analysts, which I share to some degree, that biotechs are the minor league farm teams for big Pharma and that big Pharma will take advantage of biotech developments at small companies by buying the companies outright or the products through partnerships. The leverage that these companies have through their established clinical trial, marketing and sales infrastucture allow them to pay prices that finacial investors could never justify. In addition by only paying up for those products that achieve some sucess in the lab and letting the financial investors bear the brunt of ealy failures paying a high relative price for products that have shown clinical promise is more cost effective. What is clear is that the top big pharmas are in a strong position to take advantage of the biotech revolution. That being said the big money will be made picking the smaller companies that are not getting much credit for their progress in the lab or in the clinic. just make sure they are flush with cash because dilution at a low valuation is a killer. v1