Biotech Values

[DewDiligence]

Why Big Pharma Has Been Downsizing R&D

Here's another take (from #msg-47480410):

[haysaw]: Big Pharma is changing and devoting fewer resources to scientists, for various reasons. Drug companies have woken up to the idea of licensing agreements, where they can pay smaller biotechnology companies to develop potential treatments at a fraction of the cost.

[Dew]: I think it’s more apt to say: Big Pharma has recognized that it makes economic sense to offload some of the cost of research failures to bagholder biotech investors, who have a nearly unlimited appetite for chasing the promise of newfangled technologies.

This is not a completely novel viewpoint, of course, but I haven’t seen it expressed in exactly this way.