Biotechnology is a forward-looking, cash-hungry industry. It takes £500-800m and years to develop a drug which then might not come to market, so bio-tech and pharma companies are constantly looking to all areas of the finance industry for funding. Their assets are often highly intangible (intellectual property) and, because they are so forward-looking, there is little current concrete information available for the investor other than retrospective insights into previous projects. It is a high-risk business, but one which can give massive returns. Investors need to be able to evaluate such companies properly in order to make proper business decisions about their investment. The book begins with a short history of the biotechnology industry; this is important as although it is about 30 years old, the first company went public only in 1996, so it is possible to plot the course of investment waves and dips. It will look at the European industry and its evolvement, and draw parallels and probe the similarities and differences between that and the US. The book looks at the various companies which make up the biotech industry (therapeutic = drug development – most difficult for the non-expert; life sciences – tools and kits; and the medical technology company – devices such as hips, implants) and gives tools for the investor to properly evaluate them. A CD will provide Excel examples with specific relevance to evaluating drug development.
Book Details:
- Author: Karl Keegan
- ISBN: 9780470511787
- Year Published: 2008
- Pages: 218
- BISAC: BUS036000, BUSINESS & ECONOMICS/Investments & Securities / General
About the Book and Topic:
Biotechnology is a forward-looking, cash-hungry industry. It takes £500-800m and years to develop a drug which then might not come to market, so bio-tech and pharma companies are constantly looking to all areas of the finance industry for funding. Their assets are often highly intangible (intellectual property) and, because they are so forward-looking, there is little current concrete information available for the investor other than retrospective insights into previous projects. It is a high-risk business, but one which can give massive returns. Investors need to be able to evaluate such companies properly in order to make proper business decisions about their investment. The book begins with a short history of the biotechnology industry; this is important as although it is about 30 years old, the first company went public only in 1996, so it is possible to plot the course of investment waves and dips. It will look at the European industry and its evolvement, and draw parallels and probe the similarities and differences between that and the US. The book looks at the various companies which make up the biotech industry (therapeutic = drug development – most difficult for the non-expert; life sciences – tools and kits; and the medical technology company – devices such as hips, implants) and gives tools for the investor to properly evaluate them. A CD will provide Excel examples with specific relevance to evaluating drug development.
Since the bubble of 2000, the message for biotech companies has become remarkably similar from the three major sources of capital – private equity investors, public equity investors, and strategic alliance partners. After the burst of the bubble, investors became more risk averse and companies with little clinical success and no demonstrable near-term path-to-product achieved disappointing valuations. Biotech companies responded to the new investment climate by accelerating product development. Now, the biotech industry is not just surviving, it is thriving – a global powerhouse with over $60 billion in revenues. It is rapidly maturing and is closer to profitability than at any time in its past. The market valuations of its most successful companies are challenging those of big pharma. In addition, there is huge potential in the Far East and India for expansion.
A hands-on guide for the non-expert in the biotechnology field Removes complexities associated with biotechnology
About the Author
KARL KEEGAN is currently a managing director and global head of life sciences equity research at CanaccordAdams, a global investment bank focussing on small to mid cap companies. Karl has been a financial analyst covering the biotechnology sector for over eleven years and has previously worked at Dresdner Kleinwort Benson, UBS and Banc of America. Karl and his team have been consistently highly ranked in institutional surveys throughout his career. Prior to embarking on his finance career, Karl completed postdoctoral assignments in the US and UK and worked in the pharmaceutical industry both as a bench scientist and in strategic planning. Dr. Keegan holds a BSc in Pharmacology from University College Dublin, Ireland, MPhil and PhD degrees in Pharmacology from University of Cambridge, UK and MSc in Finance from London Business School, UK. A native of Dublin, Ireland, he now lives in Kent, UK.