Banks and countries aren't the
only institutions undergoing stress tests. Young European biotech companies
have always had to meet the stress tests established by investors, but the
experience of the past four years has led VCs and public fund managers to shift
their tests toward the seemingly incompatible demands for greater innovation
and faster exits.
Given pharma's desire to bring
in products with a reimbursable profile - not just an approvable one - VCs and
public equity managers are looking only for assets with a high level of
differentiation.