Replies to post #253058 on Biotech Values

[Mufaso]

The biotech culture created norms on how to operate - but those norms were for an environment with easy money. Eg must have 18 months of cash, but within that pursue as many things as you can with little selectivity (no need to prioritize the high likelihood asset). And then get more money in 18 to 24 months. The result is that even if they obtain infinite money they just spend it faster on assets with ever more questionable value - or on their own personal compensation.

Agree with your above statement. Very hard to find a biotech with responsible management and easy to find ones who are more focused on themselves rather than shareholders. Many examples of bad self serving management in biotech but they sometimes work out. They give themselves so much stock they work to get bought out on favorable terms.

Dew had a great quote where he cited “When a good business meets up with bad management, management wins.” This is especially true in Biotech.

Finding a biotech with good fiscally responsible management is hard. I think VKTX management is an example of the good kind of management. They are picking and choosing where to invest capital wisely (e.g. they have prioritized VK2735 over VK2809). Even though they have had nearly a billion in cash for a while, you don't see them going on a hiring spree (still less than 30 employees) nor do you see excessive stock rewards.

Anyone care to offer some company names with good fiscally responsible management in the bio space and offer a reason or 2 why they are fiscally responsible? (jbog - I know you could probably cite 20+ examples of bad management but I'm looking for the positive here :-) )