The Biotech Rebuild: Finding Alpha After the Drawdown with Chris Clark | #606
Today’s guest is Chris Clark. Chris was a biotech PM for 10 years at RS Investments, managing $4.5 billion. In today’s episode, Chris discusses the complexities of the biotech sector, which has suffered a dramatic drawdown the past few years. He begins by explaining how biotech works, why it’s such a unique sector, and what has kept investors and companies frozen the past few years. He also explains the different perspectives of venture capitalists and public market investors, the current regulatory environment and how AI may reshape drug development.
Key Points
- China's emergence as a significant player in biotech innovation is creating new opportunities for in-licensing products developed there, with regulatory acceptance of research conducted in China increasing.
- The key to successful biotech investing lies in understanding the unique risk-reward dynamics of the sector, including the importance of having sufficient cash runway to navigate the capital-intensive and lengthy drug development process.
- The biotech sector is currently presenting a generational buying opportunity, driven by historically low valuations and the potential for significant returns as the market begins to recover and M&A activity resumes.
Follow Chris: LinkedIn;
Resources: When is a Dilutive Equity Raise Actually Accretive? A Look at Drawdowns in Biotech Dan Rasmussen & D.A. Wallach on The Future of Biotech and Healthcare | #589 Focus on fundamentals to bounce back Biopharma Market Update Brian Jacobs on Bond Myths, Tax Strategies, Home-Ownership and Dynamic Investment Strategies | Aptus Capital Advisors | #569 Lessons from Bessembinder
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Transcript
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