Can a Young Biotech Go Long?

YES! That's the answer given by Katrine Bosley, former CEO of Avila Therapeutics, in a piece in today's Xconomy.

I liked her whole perspective in the piece.  She argues that if a company's management focuses on creating value -- then they will have the chance to grow into a fully integrated pharmaceutical company (FIPCO) or they may also be offered opportunities for other types of deals including being acquired.  The key is to focus on the value creation first -- so you will have something tangible to consider in making a 'go long" or M&A decision. 

If you do create value, you could have the chance to become an Ironwood, Aveo, Regeneron, or Onyx Pharmaceuticals. Or you coudl get a good purchase offer from a big pharma partner that is a good fit like those realized by Plexxikon, Adnexus, Avila, Intellikine, or Calistoga. 

Either way you can be successful in bringing new medicines to market and pleasing your investors.

Posted by Bruce Lehr Dec 20th

 

Comments

[Suleman]

I think it's important for everyone to accept the 'going long' concept now, otherwise a company's strategy will fall apart when the hoped for acquisition does not happen. Expecting to go long changes the way decisions are made and forces a long term thinking to develop in which future scenarios are properly analysed to impact in a real way on decision making. Also it forces people to really believe in the technology or just get out asap. The believers who remain are more likely to get it to work