General Investing

RSS feed for this section
This category contains 13 posts

Biotech Valuation Part 2: Market Size and rNPV applied to Prolor Biotech

By Steven Breazzano ⋅ July 21, 2011 ⋅ Post a comment

As a continuation of my earlier valuation article focusing on IP, clinical trials, management, and technology, this second part will focus on market size and risk-adjusted net present value (rNPV).    While not to diminish the other important aspects of an objective valuation of a development stage biotech, market size / indication is arguably the most [...]

Biotech Valuation Part 1: Science, Patents, and Management

By Steven Breazzano ⋅ July 12, 2011 ⋅ One comment

As readers of BIP are well aware, purchasing stock or options in development stage biotechnology companies is loaded with risk.  These early-stage companies (sometimes euphemistically referred to as “pre-revenue”) burn cash funding R&D and clinical trials, with no guarantee of approval or even significant revenue following successful approval!  To further complicate matters, expenses increase as [...]

Managing Risk in Biotech Investing: Part 3

By Rockford Coscia ⋅ June 24, 2011 ⋅ 3 comments

This article is part of a three part series. Part 1. Part 2. Catalyst Risk In order to survive and thrive in biotech investing you must be aware of the catalysts, or major binary events, facing the primary and significant secondary value drivers in the given company’s pipeline. These events typically consist of data releases [...]

Managing Risk in Biotech Investing: Part 2

By Rockford Coscia ⋅ June 20, 2011 ⋅ 4 comments

This article is part of a three part series. To read Part 1, click here. Short Interest So far we’ve talked about poor institutional ownership (no >5% owners) and poor analyst coverage as red flags in biotech – each indicating that a long position in a particular biotech may be an especially risky play. The [...]

«Previous —