Biotech Values

[DewDiligence]

…your point, taken too dogmatically, would lead one to assume that in literally every case, the chance of failure would overwhelming any reason to be positive about a drug. One would then only invest in mature pharmas.

No one is suggesting that program-survival bias renders investing in small biotech companies untenable. Rather, the idea is to try to make adjustments to one’s models that take into account program-survival bias and thereby arrive at interpretations of early- and mid-stage clinical data that are less bullishly biased than what you typically see on investment message boards.