Post date: Aug 12, 2013 4:46:0 PM
Reuters Market Video - What's the overriding investment theme now with the biotech space?
JEFF KRAWS, CEO, CRYSTAL RESEARCH (ENGLISH) SAYING:
Well now at the biotech space there are a couple of ideas that are really out at the forefront of investors which is... first of all, these are companies that could likely be acquired by a large-cap pharma company that wants to bolster its pipeline. Second of all, it's that a lot of the pharma people, a lot of the people from successful biotechs have branched off to do their own startup and show how they can do it better. You've seen it in the technology industry, you've seen it with computers, you've seen it with phones, you've seen it with apple, now you're seeing it a lot more in healthcare where guys who were the chief medical officer, guys who were the chief head of research are saying, you know what, I did this once, I can go do this and I've got a whole idea of how i can come up with a technology that will change the world.
ANCHOR OFF-CAMERA ENGLISH SAYING:We just had a biotech go public, Intrexon, one day stock gain of 55%. The biotechs as a group have done pretty well. What should investors look for in terms of returns going forward?
JEFF KRAWS, CEO, CRYSTAL RESEARCH (ENGLISH) SAYING:
Well, it's going to be dictated by the individual company. Intrexon was one of the ones we pushed last time we were here, we said when they go public investors should own it. Certainly we've got a lot of confidence in RJ Kirk and his whole platform of technology. I think investors should still look for differentiated technology that has a chance to have an impact in a couple of ways. First of all, it has a chance to have an impact on society. That is, it can make a meaningful difference in medical costs, because if you can lower medical costs, obviously that's going to be something critical. Second is, it's going to approach a therapeutical area and offer some slight advantage over what is out there because that's going to be critical also. And the third item to look at is, does this company have the right components to actually be - what I call - a pacman company. Which is this company that either gobble up the others or come and be gobbled up itself.