Biotech Values

[glass_half_full]

I agree we should be skeptical, but I've always thought that there could be a lucrative business model where a discovery lab with a solid bench and pipeline:

1. discovers and gets a molecule approved;
2. launches initial commercialization;
3. ramps up for 1-2 years; and
4. IPOs a one-drug company spin-off keeping a special dividend.

This would allow biotech investors to develop their own portfolios of single-drug cash flow streams rather than being forced to accept the ad hoc portfolios that big pharma have built over the years.

It would also allow investors to better tailor their exposure to the binary-event world of discovery.

Not really what Jami is advocating, but JHMO.