âAlternative financing models' by Dr. Navid Malik
As head of life sciences research at Cenkos securities and with a background in science, Dr. Malik’s words carried bullish weight as he assured there's a 10 year bull market in Biotech just around the corner. Whilst being what any stem cell researcher and regenerative medicine financer wants to hear the reference was to Biotech and leaving regenerative medicine (RM) companies hanging for the time being. The bald statement followed a recent upward trend in the markets which saw UK Biotech firms perform surprisingly well last year with UK firm Scancell taking the global top spot for best performer with a 700% share price increase in 2012. So the silver lining for Biotech starts to let more light through but what does this mean for RM companies?
According to Dr. Malik, it seems that a boost in confidence for Biotech could well see higher interest and hopefully lower risk adversity from investors in RM companies who are currently, notorious cash burners and often shy of sufficient clinical trials data, regulatory approval and capital. This potential improved confidence would need to be ushered forward by more funding from cornerstone investors and greater consolidation between the public and private sectors. Achievable aims if you look through the Cell Therapy Catapult's vision for the industry, who's consortium style approach may well be the golden ticket. In addition, for those with Wellcome Trust grants it's worth noting they're highly regarded by financers such as Dr. Malik as bestowing both accreditation for the research and some level of validation to help investors breathe easy before signing new RM deals. The future of the âBiotech bull' and its knock on effect may indeed end up with a boost for regenerative medicine companies but will there be any broken china?!
Do you think the current state of the regenerative medicine industry is like that of the monoclonal antibody market spawned by the UK in the last decades? What do you think the role of Biotechs will be in paving the way for RM companies entering the market?
Guest blog provided by Vishal Sharma, UCL
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