Yale Pharmaceutical & Biotechnology Society EQUITYRESEARCHCLUB
Bring together MBA, graduate or medical students and postdocs Learn how to invest in Biotech and Pharma companies Bridge gap between natural sciences and finance Gain knowledge to invest one’s own money in Biotech/Pharma companies with potentially high returns AND NO BROKERAGE FEES GOALS of the YERC HOW? Bi-weekly Seminar Series, alternate Wednesdays, 18:00 Presentation and Valuation of Pharma & Biotech Companies Collaborative learning
Company Pitch Company Summary Competitive Positioning Recent Developments Financial Analysis Valuation Investment Summary & Risks
Resources for Titles 1. Company Summary Products in the pipeline Commercial potential Chance of FDA approval Acquisitions of companies Management Profile 10-K (annual company report – SEC Filling) Company’s website Yahoo Finance Morningstar.com Understand both the finances and the science behind company Profile of company Resources
2. Recent Developments Wall Street Journal Yahoo Finance Company’s website Morningstar.com Marketwatch.com New publications, FDA approvals/comments, lawsuits, presentations at scientific congresses, quarter results, press conference, financial statements…
3. Competitive Positioning 10-K (annual company report) Companies websites Scientific publications Wall street journal etc.. Most importantly, knowledge of field Ability to judge competitors scientifically Know the competition and the latest scientific developments because companies publish Can evaluate quality of experiments and conclusions drawn from data Understand company’s products and pipeline Scientists in the field:
4. Financial Analysis Debt to equity ratio P/E ratio Market Capital Assets vs liability Return on Equity Most important: 10-K10-K Accounting basics Come and Learn how to read it: “Financial Statements and Accounting Principles” Oct 24 th, lecture by Joe Citarella Yahoo finance also provides some information Resources
5. Valuation Valuation: the process of estimating the market value of a financial asset (such as stocks). Methods Relative value models Absolute value models Resources 10-K form from EDGAR database or company website ( Come and learn about it: “Principles of Valuation and Valuation Methods”, Panos Patatoukas, TBA
6. Investment Risks Regulation Serious side-effects that might only show up in Phase III clinical trials and might cost FDA approval Poor leadership Lawsuits Patent expiration Drug development process New Products New Managers