Potash Investment Thesis
He pointed to the high-profile case of NHL hockey star Mario Lemieux, who in 1993 was diagnosed with Hodgkin’s lymphona and was forced to miss games while undergoing aggressive radiation treatments.The Pittsburgh Penguins forward was prescribed the cancer drug Rituxan and within two months was back on the ice, his cancer in remission.Another common mistake: “don’t rush into an investment and make sure you know what you’re getting into on multiple levels.” Mc Camant pointed out that investors need to be aware of the phases that most life sciences companies go through as they advance from initial drug testing to human clinical trials, to eventual commercialization.Timing it right can result in every investor’s dream of a 10 bagger.Number one rule for investors: look at management But given that literally hundreds of companies are conducting research and studies into potential cures, how does an investor separate the wheat from the chaff?
Companies that succeed in finding cures can develop drugs whose patient costs run up to 0,000 a year; while that is a heavy burden to pass onto a patient, it translates into huge profits for the corporations that manufacture such drugs.
Very often, the people running these companies need to come with a diverse set of skills in order to understand the complex science behind the treatments and to communicate that understanding to an investor audience.
“These are some of the hardest companies in the world to run in terms of the level of complexity,” said Mc Camant.
” Mc Camant also noted that unlike the resource or tech sectors, where there is normally a stark division between academia and business, in pharmaceuticals the line is blurred, with about half of new drugs coming out of universities.
That means that investors interested in life sciences should keep their ears to the ground on discoveries made at medical schools or associated institutes.