Biotech Values

[DewDiligence]

Israeli biotechs and Chinese biotechs are both problematic for investors—but for different reasons.

With Chinese biotechs, foreign investors’ main problem is that there they aren’t actual shareholders of the underlying company, so they have no BoD representation and they have insufficient legal protection from simple expropriation.

With Israeli biotechs, investors’ main problem is that the science is often dubious. Compared to the US, Israel does not have as well-established a biotech VC community, so Israeli companies that ought to be in the VC stage end up trading on the TASE or Nasdaq.