Investing in biotech can be a bit like playing roulette. You can bet a single number – i.e. a bespoke biopharma company focused on a single drug candidate or class of drugs – and hope your number comes up for a 35-to-one payout.
Or you can bet a dozen numbers at a time. The payout is only two-to-one, but the odds of the ball landing on one of 12 numbers out of 38 is a lot higher than landing on one.
From an investor’s perspective, life sciences companies with technology platforms or discovery engines are a bit like betting dozens: The range of possibilities for successful new discoveries and treatments is so much broader.
