Replies to post #46024 on Biotech Values

[DewDiligence]

>Raising Capital - Just curious if others have noticed what seems to be an increase in biotech companies raising cash this year? …Anyone who agrees, would be curious on thoughts as to why?<

Because there’s a lot of liquidity out there right now.

[daved]

Re Raising capital I agree with Dew. A lot of liquidity.

I would add that biotech, as a result of the Dendreon effect, continues to be in favor with institutions.

Institutions have little desire to accumulate illiquid smaller biotechs in small increments over years. They put out the word that they may want $15 or $20 mil of an issue. The small companies grab it into their coffers to the chagrin of the small shareholder who want the institutions to compete in the open market for shares.

Dave