Portfolio-style biotechs look attractive in what remains a risk-shy, cash-conserving and unpredictable environment. The efficient and flexible model – comprising R&D-focused subsidiaries or ‘spokes’ led by a central hub – offers investors a way to spread asset-risk across a trusted central management team.
It’s not a new model, the oldest hub-and-spoke are over a decade old. Has the model been validated? In this report we ask:
- Are portfolio biotechs successfully monetising their subsidiaries?
- Is this a model well-suited to a risk-averse European market?
- Does the model increase complexity and dilute value?
- Which are the private portfolio biotechs to look out for?
