Aug. 22 - Antony Currie and Robert Cyran explain how investors are allowing a good market for biotech IPOs to tempt them into buying companies with little track record and no treatments in the market.
There's been a great it's about sciences companies to go public site fox 29 of the comes to markets that best. You say fine movement decade. But just that they will certainly help but never got to go public and it's up 30% surely this is great need he's not the company -- -- date they originally wanted to sell shares at fifteen dollars a share. That they've -- over the four bucks a share. And the other five so it's like hey you know I think not quite an itemized list of debt. So what what's I think you are saying that they are on the actually this is not the first the process is composed of numbness. So what's happened is yet that -- company just last week's appearance went public and it it also cut its price about two thirds. What happened was that basically every company that could went public. Just started to Emma and there is just a really warm welcome from these companies in Munich and he got it got kind of crazy thing there is a company contracts on. Right haven't produced anything they don't have anything even really come in clinical -- -- -- -- would homebuyers well what happens is the founder of the company he's got a record of producing companies and then selling them for big profit right now suddenly runs. Combination of that with this new sexy technologies that synthetic biology means -- -- all excited about this right. And they made the company were two billion dollars the problem is that this company probably you know didn't have named probably were -- hundred millions -- right Batman. The companies that are going public the technology's getting more and more kind of flaky and more more kind of speculative Bryant you've got gene therapy companies which is -- -- -- -- sounds good that gene therapy synthetic biology I think one of the comes as the one last week and public's interest does it works on and mark Preston -- large trusting since all great -- postseason. This is what we laws that we want people that. Swing literally since we do want these things the problem is that there's a difference between having a company as an investment company that you you know you want to succeed rather the good of humanity. And the problem is that that the companies -- going public or getting more and more kind of but that's that's had a bit -- can. Used to be a couple of years ago that even a company that was in the -- I think almost a sure fire investment he knew that is being FDA approval right. And they just couldn't flow because investors just weren't willing to give them money. And now kind of echoing the -- investors -- just anything that -- them there they're just giving my attitude and the comment that there's at least -- degree of sense to to the broad of the human race -- sciences in general buy tickets and generally it's doing very well yes I'm all the big companies that are actually growing in Madison occurring after the Biotech companies. And also they get snapped up by the pharma companies because -- they simply develop a lot or drugs and I can speak there are companies get -- about. The big companies -- -- -- of twelve -- Nazi can be up again this apparently is the biggest fans of -- there in the -- of smaller Biotech there're occasional jams you'll find you'll finally be orphan drugs base that's like designing drugs for these really rare conditions but there these these treatments actually work these companies are doing great this year. And those that type things that investors should look out for. When it comes the really speculative things need to take care of and -- -- probably by these companies that you know -- percent had a couple months which is what happened to. 1015 years -- -- -- -- -- -- about -- much about twice a decade citizen -- sort of thing so again -- couple months -- 50% off. So we may be seeing the beginnings this may be with a couple of deals coming -- much -- crisis. A certain sense that so it's a concern that -- will be practicable breaking -- tomorrow.