The buy-side view, redux
A year ago, in its premier issue, BioCentury asked fund managers what kinds of criteria they used to pick biotechnology stocks. One year, many clinical disasters, a few shining triumphs and a health care plan later, it seems appropriate to ask if and how they have changed.
Summing up the past year, Stephen Lurito, who runs Warburg Pincus Counsellors' Emerging Growth Fund, said "1993 was a humbling year for a lot of us. It was where the dream met the reality. 1994 is the year that I'm going to declare victory on some things and declare defeat on some things and move on. I think a lot of people did it last year and a lot of people are going to do it this year.
"It's hard to declare defeat. You get attached to the managements, you want to believe. But you're in business and you owe the clients a return."
Later rather than sooner
Among the eight fund managers interviewed, only a few had changed their investment behavior in the past year, becoming more conservative, while the rest hadn't changed their styles - largely because they had tight screens to begin with. Still, almost all said that they are looking more at companies in Phase II studies and beyond and less at earlier-stage