Business Insights: Biotech Stocks
De-risked assets, real-world clinical evidence, data, and the return of due diligence
“The private capital markets are flush with cash, but private investors are becoming much more thoughtful about how they deploy capital, ensuring that every dollar they apply to an investment is carefully vetted.”
Kathryn McDonough, Head of Middle Market Life Sciences, J.P. Morgan Commercial Banking
“The silver lining is we have seen a return to fundamental principles, where specialized investors engage in thorough due diligence and discipline and selectively invest in the best opportunities with the highest probability of success.”
Chris Garabedian, Chairman and CEO, Xontogeny & Venture Portfolio Manager, PXV Fund Perceptive Advisors
“Therapeutic areas that appeal to investors, strong management teams, relationships with large pharma, and the ability to generate data and advance pipelines are always key to attracting funding. Areas that are expected to be minimally impacted by legislation such as the IRA, and therapeutic areas such as oncology, autoimmune and CNS continue to be of strong interest, as are tools to assist in early-stage detection of diseases and AI drug development.”
John Pennett, Partner-in-Charge of the National Technology and Life Sciences Group, EisnerAmper
“Company data and the therapeutic stage are the most important factors for investors. Big companies with good data and experienced management teams will always be able to IPO.”
Jordan Saxe, Head of Healthcare Listings, Nasdaq
“Effective validation in the biotech industry hinges on real-world clinical evidence in humans. To succeed, biotech companies must articulate a clear market (therapeutic) potential. Drug development today must consider factors like reimbursement, clinician utilization, and market differentiation. A well-supported market study, robust clinical data, a defined regulatory path, and realistic timelines are essential components of a compelling pitch.”
James Gale, Partner, Signet Healthcare Partners