January 10, 2012

per·spec·tive

2. the proper or accurate point of view or the ability to see it; objectivity

As investors in a publicly traded biotechnology company, we usually are obsessed with near-term milestones. Big pharma are not obsessed with such milestones. If, for example, regulatory or clinical trial ambiguity requires more time to be made unambiguous, big pharma does not care. They have a different mindset.

[Credit the paraphrased thought above to yesterday's live chat by Adam Feuerstein at the 2012 JP Morgan Healthcare Conference in SF.]

My investment thesis, and the underlying potential return on investment (and annualized ROI or CAGR), is strongly influenced by the pre-commercialization acquisition of the company by big pharma.

But, like you, I do navel-gaze and obsess, from time to time.

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