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Small Biotechs Spending Less

The median and mean operational cash spending for small public US biotechs (less than 250 employees) is down 37% and 42% respectively, since the 1st Quarter of 2008. Company cut backs have shown up in the lay-off numbers as well as in the number of drug development projects put on hold. These quarterly numbers give a sense of the direction. For a look at the annual data, here is how spending breaks down for the Read More >

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1 in 4 Biotechs Above 100% – Waterfall Chart YTD

Year to date,  27% of biotech stocks have doubled in price. 65% are in positive territory in 2009, a strong contrast to the YTD data last year:

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The Rise and Fall of Undervaluation

If “price to cash” is a usable metric for fair value of a risky biotech (i.e. valuation of a biotech vs what its cash balance is at the bank), then the cheap times are long gone. Back at the end of 2008 we had a record 24% of biotechs trading below cash. Investors were making the assumption that the previous reported cash balance was already being spent and additions to the balance were in jeopardy. Read More >

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The booming H1N1 vaccine market

The vaccine market is booming – and biotech companies are just one of the beneficiaries.  A recent Associated Press Article explains that an increase in government support and newer, better technologies are just a part of it.  Patients look to benefit from new vaccinations on the horizon for diseases such as Alzheimer’s, herpes, malaria, and perhaps even a universal flu vaccine. It was just last month at the BIO Investor Forum’s H1N1 panel that panelists Read More >

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Perspectives on today’s IPO candidates

Some speculation is coming back into the sector but most movement in public markets is specialist driven, not generalist driven. What will it take to get the generalist investors in? Unfortunately, most IPO stocks since 2005 have underperformed and have left a bad taste in the mouths of generalists. This has left generalists believing they cannot just come into the sector and purchase a basket of young biotechs. Example of a successful IPO: Targacept filed Read More >

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