Financing discussions should carry the same strategic weight as M&A talks. Philip Ross argues the cost of capital from selling stock is often theoretically higher than from selling the entire company. This reframes the decision to dilute ownership for funding as a pivotal choice that boards and management teams should not take lightly.
The Jefferies Global Healthcare Conference in London is particularly productive because its schedule precedes the US market open. This timing allows C-suite executives and investors to engage in focused, strategic conversations without the constant distraction of breaking news, press releases, and market fluctuations that occur during US trading hours.
Philip Ross provides a long-term bullish outlook by comparing biotech to the tech industry. He suggests biotech today is where tech was a decade ago, implying it's still in the early stages of a massive, prolonged growth and innovation cycle, despite inevitable short-term volatility. This frames the industry as having significant room to run.
Jefferies' Philip Ross argues that while large pharmaceutical companies have ample cash ("firepower"), the true constraint is their P&L capacity. Integrating and funding a new development asset requires making difficult internal budget cuts, as every dollar is already accounted for, limiting their ability to pursue deals that don't self-fund.