In addition to having written one of the funniest paragraphs in the annals of financial satire (your last paragraph), your comments on hedge fund activites make a lot of sense. The NYTimes has a trendy article about them:
Investors not only need to know about the science behind biotechs; they now must figure out what positions hedge funds will take. Seems more than a full-time job.
Isn't this last paragraph really reality with respect to biotech investing?
So drug X is in phase III... it might fail. It succeeds in phase III, but will the company properly document the NDA for approval? It gets approved, but can the company effectively sell it?
This sliding scale of arguments is actually very valid. I laugh when investors think that such questions signify increasing levels of desperation by those evil hedge funds.
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