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Chinese capital (fixed my misreading of pipeline chart)I had a little time on my hands this morning, so I finally did some homework on the Chinese economy, and investment into biotech.
I've been meaning to repost a Bloomberg article on Chinese BioTech investment that BullishBilly, at StockTwits, posted last week.
A couple of things interested me about it. 1) It points out that Chinese money, $1.4 billion dollars of it, flooded into private US biotech firms during the 1st quarter of 2018. What caught my eye is that it was going onto private, not public, companies.
And second, it was interesting to look into the companies that were mentioned in the article--Moderna Therapeutics, Harmony Biosciences and Semma Therapeutics.
Moderna raised $500M in February, and is valued at $7B. OK, sure. What you need to know is that it's huge pipeline *is mostly pre-clinical, with one or two phase ones which aren't yet complete*. (The previous phrase is incorrect, I misread the pipeline chart. They have one phase 2, a bunch of pre-clinicals, and more phase ones than preclincals.) It begs the question whether the company exists to make money by bringing drugs to market, or to provide a silicon valley style private investment balloon for billionaires. I mean geez, with that kind of money why not just buy the Salk Institute--you'd get a better bunch of scientists (and a nicer building).
Then this morning the NYT had an good article on the Chinese economy and debt, in the light of the Turkish crisis: Will China's Economy Fall Next? Probably not, but this is a good intro into the Chinese economy by the chief global strategist at Morgan Stanley Investment Management.
From this article, it seemed like Chinese capital itself might be feeling a little pressure to get out before the dollar strengthens further relative to the renminbi, or before their government tries to take action to prevent capital flight.
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Msg # | Subject | Author | Recs | Date Posted |
4591 | Re: Chinese capital | meishairwin | 1 | 8/16/2018 5:16:18 PM |