How do biotech venture investments in public equities (known as VIPEs) perform?
Do they outperform mutual funds and hedge funds?
While anecdotal evidence points to some really successful investments (e.g. Abingworth’s investment in Algeta in February 2009 (24x deal return)), this analysis of a large sample of VIPEs in the biotechnology and pharmaceutical industry over the period of 1995-2014 shows that return profiles are similar to returns in the private VC market: few big winners, but overall a high loss rate. The analysis has implications for management, venture capitalists and investors. For details on the performance of VIPEs, investment trends, contracting terms etc.
See the full paper: http://commercialbiotechnology.com/index.php/jcb/article/view/758