Gary Sadly, investors aren't the only people looking to make...

Gary

Sadly, investors aren't the only people looking to make some money through biotechs. Unlike investors, management will make a fortune whether or not the drugs are proved successful - it's a sweet lark and no wonder some of them are milking it. Sometimes it's hard to see how the expense is justified as without the results they have nothing to sell and if the results are great then the drugs will damn near sell themselves. As I said, it's a sweet lark.

You could argue that they're needed for the business of raising funds; fair enough, although it must be nice knowing that 500K of the money you raised will be destined for your yearly supply of beer tokens. I think that some investors make the mistake of thinking that everyone in a biotech is there for the science and the progress. Biotechs are companies, and when they talk about attracting people of a certain caliber it's often just buying into the myth that you can't get anywhere without a certain number of highly paid execs, it's a self-fulfilling prophecy that over time has driven the remuneration to stupid levels.

You could employ the most well-connected, charismatic and snake-tongued business creature on the planet, but unless a biotech comes up with credible results it'll never reach lift-off. It must be a good position to be in - you get paid heaps and if the science tanks you can walk away with no accountability. If the science pulls through then you get a huge bonus for waiting round to see if the science works.

Anyway, there's no point getting annoyed because it ain't going to change soon. I can appreciate how you'd prefer the money going to the brains rather than the golfers.

Cheers

A hopeful pessimist