Biotech Values

[mcbio]

Re: Biotech opportunity in China

I would not directly invest in any Chinese company because foreign investors aren’t real shareholders with BoD representation. Rather, foreign investors in Chinese stocks are more like the holders of “tracking stocks” that were popular during the circa-2000 tech/biotech/internet bubble, who mostly ended up getting exploited and losing a lot of money.

I very much appreciate the caveats and this is probably not something I would ever actually pull the trigger on but just keeping an eye on for now. But, would also question whether or not those "tracking stocks" that crashed before were tied to companies with meaningful partnerships with legit U.S. companies. Again, Hutchison China MediTech has meaningful deals with AZN, LLY, Janssen, Nestle (I think some of these are also investors). So, combined with prior experience of management in big pharma/big bio, this company doesn't strike me as the typical wildly speculative/questionable Chinese small-cap.