PharmaTelevision - KBC Peel Hunt: The Bad News for Traditional Therapeutic Biotech Companies

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Video title: KBC Peel Hunt: The Bad News for Traditional Therapeutic Biotech Companies

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In this episode of PharmaTelevision News Review, Fintan Walton talks with Dr Paul Cuddon, Analyst at KBC Peel Hunt. Filmed at BioTrinity 2010 in Newbury, UK, they discuss:

• The current investment mood for biotechs

• UK biotech success stories

• Companies with lower risk

• Platform companies as opposed to firms with one or two pipeline products

• Private companies as part of the emerging IPO market

• Big pharma acquisition before IPO

• Dr Cuddon's views on what business models will work in the current market

Full video transcripts are available with PharmaTelevision Premium Content. Click here to buy a subscription or sign up for a 14 day free trial.

The current investment mood for biotech's

Fintan Walton:

Hello and welcome to PharmaTelevision News Review here at BioTrinity in Newbury, Berkshire. On this show I have Paul Cuddon, who is at KBC Peel Hunt an Analyst there, welcome to the show.

Paul Cuddon:

Thank you.

Fintan Walton:

As an Analyst working in an investment bank it's you obviously see a range of companies in life sciences area, we are here at BioTrinity there is a range of companies here too, well you get an idea of what are the real investment opportunities the ones that you want to steer away from or not just you but the markets tend to steer away from, so how would you describe the current investment move for a typical biotech company currently?

Paul Cuddon:

Okay, so if we start by defining a typical biotech company as loss making therapeutic, zero revenue pipeline 00:01:13 story I think the appetite is actually very low. This is in the way that we were coming to this conference we were looking to come to this conference to say appetite is picking up which over late 2009, early 2010 when investors were beginning to realize that portfolios and other sectors hadn't collapsed the world survive the financial armageddon and they've actually came out with a fairly large funds still under management which was a surprise to a lot of people their risk appetite started to pick up, we started to see much more interest in therapeutic biotech companies likes of Vernalis, Antisoma, Vectura, BTG these sort of names are cropping up again on investors wish lists. And I think safe to say they were starting dip their toes back in the water unfortunately what's happened particularly over the last few weeks is that there have been several blow ups in therapeutic biotech's and the companies that people were starting to take an interest in, so I think that's been a big setback for the sector actually and the traditional loss making therapeutic biotech is solely out of favor again I would say for another sort of 12 months. And there a few more stories now we are waiting on to run that course hopefully prove successful and then we can start thinking more positively about the loss making therapeutic biotech.

Fintan Walton:

So it's a bad start quarter one, 2010 bad start?

Full video transcripts are available with PharmaTelevision Premium Content. Click here to buy a subscription or sign up for a 14 day free trial.

Fintan Walton

Dr Fintan Walton is the Founder and CEO of PharmaVentures . After completing his doctoral research on the genetics of cell proliferation at the University of Michigan(US)and Trinity College (Dublin, Ireland), Dr Walton gained broad commercial experience in biotechnology in management positions at Bass and Celltech plc (1982-1992).

Paul Cuddon

Analyst

Dr. Paul Cuddon joined KBC Peel Hunt in 2007 following 8 years experience in the drug discovery industry. While completing a PhD at Cambridge he worked in big pharma with Merck Sharpe and Dohme and spent three years in biotech with DanioLabs. He brings significant experience in academic and commercial due diligence to the sector.

PharmaVentures

PharmaVentures is a corporate finance and transactions advisory firm that has served hundreds of clients worldwide in relation to their strategic deal making in the pharmaceutical, life science and healthcare sectors. Our key offerings include: Transactions / deal negotiations; Product / technology valuations; Deal term advice; Due diligence & expert reports; Strategy formulation; Alliance management; and Expert opinion for litigation/arbitration cases. PharmaVentures provides the global expertise to ensure our clients generate the highest possible return on investment from all their deal making activities. We have experience of all therapeutic areas and can offer advice on both product and technology commercialisation.

KBC Peel Hunt

KBC Peel Hunt is an investment banking group based in London, England