The Three Ws of Biotech Investing
James “Jimmy” Ahern is a managing partner at Laidlaw & Company, where he focuses on managing financing for public and private companies in the healthcare field. Also known to his friends as Jim, James Ahern is experienced in biotech investment banking and knows what to look for in the biotech industry.
When looking for solid investments in biotech, the three basic questions are when, where, and what. It’s not always the best time to invest in a specific biotech venture. It often takes many years for biotech companies to generate a return, so investing at the right points during the life cycle of flagship projects is crucial.
Another concern is where the company is located. That’s a factor in any type of investment, but much more so in biotech. A location’s legal framework and friendliness to biotech initiatives can play a huge role in a company's success, helping an investor to decide whether to invest in a firm.
Finally, picking the right area to invest in is key. Focusing on areas of the highest medical need is usually the best way to maximize the chances of a good investment. If a biotech is working on something for which the demand may turn out to be marginal, it’s hard to justify backing it.
When looking for solid investments in biotech, the three basic questions are when, where, and what. It’s not always the best time to invest in a specific biotech venture. It often takes many years for biotech companies to generate a return, so investing at the right points during the life cycle of flagship projects is crucial.
Another concern is where the company is located. That’s a factor in any type of investment, but much more so in biotech. A location’s legal framework and friendliness to biotech initiatives can play a huge role in a company's success, helping an investor to decide whether to invest in a firm.
Finally, picking the right area to invest in is key. Focusing on areas of the highest medical need is usually the best way to maximize the chances of a good investment. If a biotech is working on something for which the demand may turn out to be marginal, it’s hard to justify backing it.
