Biotechnology venture capital investing is a unique animal. Impressive returns can be obtained, but there are attendant risks: uncertain and lengthy FDA approval process; long investment holding periods for investments; reimbursement issues; difficult IPO environment; and the rise of milestone payments in M&A deals. Peter Johann of NGN Capital discusses the Biotech venture investing environment, including IPOs, M&A, Private Investments in Public Entities (PIPEs), and more, in an interview with the Jutia Group "Follow Venture Capital to Big Gains in Biotech: Peter Johann." The interview gets a bit technical towards the end, but overall it's an interesting look at Biotech venture investing. Here's the link: http://jutiagroup.com/20120705-follow-venture-capital-to-big-gains-in-biotech-peter-johann/
1 Comment
There's an interesting article posted yesterday on the Fortune Term Sheet website by Lisa Suennen of the Psilos Group discussing the decline of healthcare venture capital investing in the US, and why she believes good investment opportunities still exist. Here's the link: http://finance.fortune.cnn.com/2011/11/14/hey-where-are-all-the-healthcare-investors-going/?iid=SF_TS_Lead
I agree with much of what Ms. Suennen says in her article. One additional problem is the time frame for investing in US biotechnology deals has stretched out. In my view, these factors suggest that early stage biotechnology investing doesn't fit will within a venture capital framework where funds have 10-12 year terms. Smart VCs in this area are adapting to this new paradigm, but overall, healthcare venture investing is challenged. |
About this Blog
This Blog is a collection of thoughts on a variety of topics of interest to me, including: Categories
All
Archives
January 2024
Copyright Notice:
All original works on this site are © Allen J. Latta. All rights reserved. Neither this website nor any portion thereof may be reproduced or used in any manner whatsoever without the express prior written permission of Allen J. Latta. LP Corner® is a registered trademark of Campton Private Equity Advisors. Used with permission. DISCLAIMER: Readers of this Blog are not to construe it as investment, legal, accounting or tax advice, and it is not intended to provide the basis for the evaluation of any investment. Readers should consult with their own investment, legal, accounting, tax and other advisors to the determine the benefits and risks of any investment.
Private equity investments involve significant risks, including the loss of the entire investment. This Blog does not constitute an offer to sell or the solicitation of an offer to buy any security. |
Copyright © Allen J. Latta. All rights reserved.