According to investor Joe Edelman, China's main strength is developing new molecules. This means US and European firms will increasingly in-license drugs from China, creating fierce competition for the small US biotechs that traditionally filled this pipeline role for larger pharmaceutical companies.
Top biotech investor Joe Edelman's core philosophy is pure objectivity. This means being willing to repurchase a stock at a higher price than it was sold for if new, positive information changes the probability-based assessment of its value, overcoming common investor ego and anchoring bias.
Edelman argues gene editing is still slightly overhyped if its sole purpose is to replace an injectable drug, as safer alternatives may exist. He sees underhyped gene therapy, previously sidelined by safety concerns, as poised for a comeback due to its enormous power and potential for major breakthroughs.
While fields like neurology and cancer have a long runway, Edelman notes that some therapeutic areas are reaching a point of diminishing returns. In markets like psoriasis, existing drugs are so effective it's "hard to imagine" they could get much better, signaling saturation and a higher bar for new R&D investment.