I’m with biotech. I’m having trouble coming up with why biotech should be hurt so much by economic slowdown or credit issues. I can come up with some reasons, but it’s just hard to believe that the economic situation changes the long-term on biotech.
JoeyDVivre Wrote: ------------------------------------------------------- > I’m with biotech. I’m having trouble coming up > with why biotech should be hurt so much by > economic slowdown or credit issues. I can come up > with some reasons, but it’s just hard to believe > that the economic situation changes the long-term > on biotech. biotech has to raise a lot of equity at some pt, right? this is not a good equity raising market! I could be wrong, I focus more on the MCOs/PBMs than i do drug names
OK…Good reason…
daj224 Wrote: ------------------------------------------------------- > JoeyDVivre Wrote: > -------------------------------------------------- > ----- > > I’m with biotech. I’m having trouble coming up > > with why biotech should be hurt so much by > > economic slowdown or credit issues. I can come > up > > with some reasons, but it’s just hard to > believe > > that the economic situation changes the > long-term > > on biotech. > > > biotech has to raise a lot of equity at some pt, > right? this is not a good equity raising market! I > could be wrong, I focus more on the MCOs/PBMs than > i do drug names Couple problems here: 1) biotech and pharma aren’t the same thing 2) Sure, early state biotech needs capital, but there are still venture funds out there. Exits are clearly frozen right now, but we’re talking public markets, right? So if you can find a profitable biotech trading for 2-3X sales that would be interesting (there might be tons of these, I have no idea). Big biotechs aren’t dependent upon capital markets (usually) to do acquisitions, but M&A will be slow regardless.