A lot seems to made of the fact of whether or not some institutional investors (ie; Baker Bros. and others) have positions in individual biotechs. Perhaps some thought should be given to companies that provide funds to biotechs - expecting a return on their investment. This thought came to mind since, although I have about 20% of my portfolio in biotechs, I finance this hobby with a dividend paying portfolio. One of those companies in that portfolio, currently yielding north of 8%, is Hercules Capital (HTGC) (a Business Development Company) and they make money by investing in start ups - to include biotechs. They are very good at what they do. The link below is to their latest quarterly presentation. If you take a look at slide number 35 you will find a list of some of the "life sciences" companies that they are financing. A peek at their 10q or 10k will fill out the full list. If you are looking for new investments it might be a good source for candidates for DD. Just thought I'd throw that out there.
HTGC is also not a bad investment itself if you're looking for a dividend paying stock. Just my two cents worth.