"Consider that almost all biotech companies have to raise more...

"Consider that almost all biotech companies have to raise more money down the road, so if that scared off investors, there wouldn’t be a biotech sector, and all R&D would be done by big pharma, funded from the cash flows harvested from marketed drugs. But drug companies clearly are able to attract investors to fund them partway through development despite it being obvious that they will likely need to raise again. That’s because investors recognize that value is created along the way. They fear that if they wait until the next financing before investing, they won’t get to invest as much as they’d like in that financing since other investors will have the same idea. Along the way, some companies get acquired for a premium, rewarding those who held positions and leaving behind those who were waiting for a financing. So biotech investors have learned to invest despite the constant threat that companies will finance. It’s just factored into their risk/reward calculus. "