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Demographics are compelling
- Estimates provided by the United Nations project that the 60+ population
will reach 1.9 billion by 2050 - 22% of the total population
- Demographic shift spells an increase in the demand for pharmaceuticals
- 2003 pharmaceutical sales exceeded $429 billion
- Mergers and patent expirations in big pharma create the need for robust
pipelines and the need to in-license compounds
Drugs make sense
- Intervention with therapeutics prevents 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
- More than 160 biotech products have been approved by the FDA and are
on the market
- 734 biotechnology drugs were in human clinical trials in 2003
- Ever-growing percentage of companies becoming profitable and attaining
critical mass
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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