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Why Invest in Lifesciences
and Biotechnology?
 Demographics are compelling
• The
graying of America - >65 growing at 15%/year and the >85 growing
at 40%/year
• Demographic
shift spells an increase in the demand for pharmaceuticals
• 1997
US healthcare expenditure =$1,092 B
• Drugs
account for approximately 10% of Health Care costs but growing
• Mergers
and patent expirations in big pharma create the need for robust
pipelines and need to in license compounds from biotech companies
Drugs
make sense
• Intervention
with therapeutics prevent other more expensive treatments
• Surgeries
• Long term care
• Long hospital stays
• Medical devices
• Psychiatric wards
• Drugs
enjoy high margins and long product cycles
• Functional
genomics will produce many new targets
The
industry is maturing
• 125
biotech therapeutics and diagnostics have been approved by the FDA and
are on the market
• 600 phase
III trials ongoing World Wide
• 321 phase II trials
• Several
hundred additional compounds are in human clinical trials
• Ever-growing
percentage of companies becoming profitable and attaining critical
mass
Biotech
as an investment - what do we look for?
• Broad-based
proprietary technology platform
• Strong intellectual
property position
• Novel technology
• Products
that address major market opportunities (large unmet needs)
• Management
team that is scientifically grounded yet practical
• Clear
strategy for commercialization of products
• Attractive
valuation on risk/reward basis
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