Biotech Investing
Not Worth It Anymore
10/05/12 16:09 Filed in: GenomeWeb Daily Scan
Bloomberg reported that a survey conducted by the National Venture Capital Association found that about 40 percent of the 150 venture capital firms that responded decreased their life science investment in the last three years. Bloomberg also observed that biotech stocks are now tending to fall even after firms receive approval for their drugs. S. Pelech comments that it is not surprising that venture capitalists and other investors are very wary of investing in biotechnology companies based on the last decade of very poor returns from this sector. However, roughly half of the new drugs entering the market place today originate from the biotechnology industry and large pharma relies on a healthy biotech industry to meet its R&D needs, often by acquisition. These big fish will have a lot fewer small fish to sustain them the way things are going. Read More...