ARTICLE | Strategy

Back to School 2004: Asset accumulation

Back to school

September 6, 2004 7:00 AM UTC

A few months ago, BioCentury spilled a lot of ink to deconstruct the NRDO model of no-research, development only companies being formed to scavenge for products or technologies that can be commercialized quickly and offer private equity investors a quick IPO or trade sale exit.

In addition to pointing out a variety of reasons why the “de-risked” approach was limited in terms of valuation leverage, we noted that any number of “starter models” could work equally well to get companies going but that, to sustain themselves, even the NRDO players ultimately would find it necessary to integrate backwards on the value chain (see “Deconstructing De-Risking,” BioCentury, June 7)...