Private equity funds have so far stayed noticeably cool towards biotech, and analysts have begun to question why. This analysis in the Chicago Tribune offers some interesting insights into how private equity could approach the industry. An advanced biotech company would offer high value to the investors, allowing them to "strip" out low profit programs and sell them. It could be that the private equity crowd is waiting for the biotech IPO market, which has been lackluster of late, to heat up.
- here's the analysis from the Chicago Tribune
Related Articles:
Private equity deal in works for Peptech? Report