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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