Replies to post #515276 on NorthWest Biotherapeutics Inc (NWBO)

[no2koolaid]

I have been on the wrong side of a biotech that could not manage to stay liquid with an approved NDA and, yep, Chp 7 - liquidation - saw their asset go to a larger pharma. But the issue was with management and not BP.

While I could write at length about BP and their change in R&D and product development, I would simply say that all BP used to spend about 18-20% of revenues on R&D. At some point in the past, they changed and decided it was cheaper to acquire than develop. Today R&D for many BPs barely breaks double-digits, with claims of being more efficient, which is misleading, The focus is really on a highly competent business development group that sits in finance and looks at businesses to buy or partner with. They are the people that do the sophisticated analysis that make my little DCF exercise look pedestrian.

Make no mistake, a BP will take out a crippled firm. However, when they find one that is very valuable in a longer term view, they will jump in with cash and a partnership that, over time and an effective "tryout" often turns into an acquisition.