Our existing investors participated about ~15-20% of this round, the rest are new. And we went with private capital again (family offices, high net worth individuals, and sovereign funds), no VC/PE (except Vickers).
The investment banks are not convinced their drugs will work. That isn't an argument against them imo. I'm just saying that their valuation and the 500MM they raised doesn't mean much either. It sounds really impressive when you say they're valued at 12 billion, but raising 500 million is less unusual than the valuation. It would be impressive if that was just for a hair loss drug, but as you say they have a lot of more interesting drug candidates.
How much money have they raised since the arthritis drug failed? I don't think they will have much success raising money now until something shows success, and the phase 2 data from the hair loss drug isn't going to cut it.
I'm not the only one saying this btw. A lot of people in finance are skeptical of them, and balk at the valuation of 12 billion. That valuation does raise a big red flag. I think the odds of them even bringing this to market are 50/50 at best. We will see how phase 3 firms out, but I'm not expecting anything spectacular.
The investment banks are not convinced their drugs will work. That isn't an argument against them imo. I'm just saying that their valuation and the 500MM they raised doesn't mean much either. It sounds really impressive when you say they're valued at 12 billion, but raising 500 million is less unusual than the valuation. It would be impressive if that was just for a hair loss drug, but as you say they have a lot of more interesting drug candidates.
How much money have they raised since the arthritis drug failed? I don't think they will have much success raising money now until something shows success, and the phase 2 data from the hair loss drug isn't going to cut it.
I'm not the only one saying this btw. A lot of people in finance are skeptical of them, and balk at the valuation of 12 billion. That valuation does raise a big red flag. I think the odds of them even bringing this to market are 50/50 at best. We will see how phase 3 firms out, but I'm not expecting anything spectacular.
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