Biotech Values

[dewophile]

speaking of not appreciating the risks in a drug launch, one of my biggest losses was SGEN. They had a recombinant thrombin product approved that I surely thought would supplant bovine thrombin. After all every other recombinant drug when introduced took over the market, including in my own field when recombinant FSH replaced urinary FSH. As it turned out hospitals were compensated by payers a fixed amount regardless of what ancillary drugs like thrombin were used in surgery. so there was zero room to command a premium over bovine thrombin for hosptials. Plus the company had to work through sometimes lengthy logistics through hospital P&T committees to get on formulary. There was a huge sell the news on approval by investors who were much savvier than I. I ended up making some back when BMY bought the company, but still a net loss for me and a lesson learned