I too agree with Pos and Heraclitus in making investments decisions in this high risk biotech sector. My approach is to satisfy my big 10 P's in making any investment choice.
1. Principals involved-scientists/management, credentials and track records. 2. Products or technology developed to date. 3. Patent protection for products/methods of application. 4. Pipelines and potential avenues within research programme 5. Phases l-lll clinical studies with timelines. 6. Payments capacity within cash burn/capital/grants/income. 7. Potential applications and likely market share/size. 8. Partners-ownership/collaborative studies/sales/marketing. 9. Production/sales costs vs likely competition. 10.Price for shares holding no/minimum premium.
As stated by Heraclitus patience then becomes paramount, with initially a small involvement increasing only as projections and milestones are met, utilising inevitable periods of weakness to obtain larger parcels. With luck a successful gestation will take about 10 years, an outcome I am yet to await.
