Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: scaram(o)uche who wrote (226)	7/27/1998 12:45:00 PM
From: aknahow	Respond to of 4974

Rick, the core problem is the insistence of the F.D.A. that they must determine not only safety but efficacy. This makes the cost of development excessively high. So biotechs without positive cash flow are forced back to the capital markets in a position of weakness and with no choice but to accept deals which work to their detriment. At the same time the government allows the public to make its' own decision on vitamins and herbal products, spending billions to do so. But if you and your doctor want to try a drug with minimal side effects, that has not yet been approved by the F.D.A., you will be unable to make that decision even if it involves a critical life and death situation. Thus the biotech industry which has the science we all would like to see developed, is in real danger of collapse. If anyone agrees, try to get the politicians in your area focused on this problem. I believe something could be done if the public got behind a change in the F.D.A. The herbal product makers have clout and will be able to withstand serious regulation because of widespread support among the masses. Do people know their kids and parents might have died when a safe drug might have been of some help but even if not, it would have done no additional harm? Until this core problem is resolved it will take more money than even scientist with great ideas can expect the capital markets to provide given the time the capital will be needed before any return can be expected. I do not criticize the deal makers for their, "excessive", rake offs since the additional risk created by the F.D.A. are real and must be compensated for.

To: scaram(o)uche who wrote (226)	7/27/1998 2:27:00 PM
From: scaram(o)uche	Read Replies (1) \| Respond to of 4974

a private response from an insightful friend..... >> The prices of the stocks that we own are controlled by people with vested interests and poor track records << This is the most incredibly, inefficient, pathetic capital market in the history of, well, history. the gap between the value that's being created, in aggregate, in this industry, which is staggering, and the ability of institutional and individual investors to intelligently allocate capital in this area is as if they were at opposite ends of the universe. that leaves the capital market open for hypesters, hucksters, big money "smart" folks, jerks, and even crooks, to make money, to be gurus. meanwhile these folks at these companies huddle around their lab tables and computer screens and change the world.