Considering going into an investment? Needing independent research? Wanting a corporate deal for a portfolio company? Planning to exit an investment?
The Life Sciences sector has and continues to generate very attractive returns
for many investors, but at the same time has produced losses for other investors. The sector includes
a large number of extra-high risk companies, many of which are founded on weak foundations and pursuing
projects that are unlikely to either reach the market or to be seen as attractive opportunities by large
companies for commercialization. The large professional investors tend to now focus much more on mature
companies with products and a pipeline.
Small, private companies may be able to progress development of their products or technologies up to a point, but are very unlikely to be able to commercialize them on their own on a worldwide basis, as they will not be able to set up the infrastructure particularly for marketing and distribution. As a result, the vast majority of companies will need corporate deals with larger companies that have the means to commercialize on a large scale as well as globally. Unfortunately many companies do not “focus on customer needs”, in terms of recognizing that actually the large companies are the end-customer, not the stock markets. Corporate deals are crucial to companies and investors CAN and sometimes DO play a key role and CAN drive corporate deals, much like they drive IPOs.