Investment Banking for Life Sciences

Hello everyone,

Over the past six years I have pursued a career in the life sciences, particularly molecular medicine. I ended my education with a terminal master's degree in spite of being enrolled in a PhD program. The primary reason for this was my blooming interest in finance. Over the past 6 months I have been working as a part-time contracted consultant advising an investment bank on certain medical devices and pharmaceuticals. This work appealed to me, but what really excited me was the dynamics and modeling work the bankers were doing. After talking with them over the months I decided that this is really what I need to be doing in some capacity, however, that particular bank was not hiring at the lower levels (or at all). My question to you all is if it is possible for someone with a mathematical and scientific education to break into the industry as an analyst and what are the necessary steps in doing so? I am certain I will be enrolling in a MBA program but would really like more industry experience and knowledge beforehand.

Any advice is really appreciated and I thank you for listening.

Best regards!

 

Not sure I'm qualified to offer any advice here but good luck. How about healthcare ER? Maybe as a Pre-MBA job before you try to hit up banking as an associate.

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I doubt you're going to get any real specific advice on here - I'd focus on networking with the firm you consulted with, maybe not for a job but to find out about the best way to get into the industry...ask if they have contacts at other firms that might be looking for someone with your skillset, etc...I'd also think that ER would be more likely for an entry-level role.

Alternatively, you could go work in industry in a science-based role, go for an MBA after a few years, and transition in that way with some experience.

 

I am in a somewhat similar situation, starting working at a CRO after college with plans of returning to med/grad school but ended up at a mid size biotech/pharma a few years later and after 5 or so years of work in the life science I've developed an interested in investment/finance and looking to break into ER.

My original plan was CFA level 1 this June and soon afterwards GMAT for MBA admission the following year. Was hoping to use the CFA level 1 to try to break into ER between (hopefully) starting B-school (to see if it is something I would like and because I am so over my current bench position) but studying has not gone as well as I would like and thus may jump into GMAT and go from there.

At least you are already in the field, any way you can use your network to progress from there?

 

I have some friends who have gotten into IB as both an analyst and associate coming from a life sciences background and from their experience's I would say that the most important thing is to get some form of internship experience. This will show that you have a genuine interest in the field and can apply the quantitative and analytical skills from your background to IB.

Might be worth running your interest in gaining direct experience by your contact's and see if they can hook you up.

Once you have your experience you can sell yourself as a candidate with a genuine interest together with the life science technical knowledge, a deadly mixture especially for the ever changing healthcare sector.

 

Thanks everyone for your advice, I truly appreciate it. I am definitely going to try and get an internship for as soon as possible. ER seems like a good deal, is it more difficult to break into investment banking through the ER route?

Another related question: Many people from medical and graduate school end up in consulting. I have thrown some applications out to some of the boutique firms that deal with life science and health care with some positive feedback. Consulting is definitely simpler for me to break into, my question is if I am better off pursuing ER and investment banking internships instead of consulting jobs if my goal is health care investment banking?

Thanks again eveyone!

 
Neuroinvestment:
but what really excited me was the dynamics and modeling work the bankers were doing.

Best regards!

Actually read as: what really excited me was the opportunity to make actual money as opposed to having a PhD.

Just giving you a hard time. It is definitely possible to make the move, but like others have said, you need to approach it like an O&G engineer does. Honestly, the most sure-fire way is probably to get your MBA. That shows the capability to grasp business concepts and a clear interest in finance as opposed to medicine, and it may give you the opportunity to come on as an associate somewhere.

 

Haha I won't pretend that isn't an influencing factor :-),but in all seriousness academics and even physicians are getting hit hard. Research funding is at an all time low (NIH less than 1% at times) and tenure track positions are almost non-existant. Reimbursement for clinicians is getting worse and the bankruptcy rate for those in private practice is rising. I think more and more scientists and physicians will begin to transition into finance related endeavors.

I will definitely get an MBA, but I need some more work experience first. Hopefully something like ER or consulting should do that trick with some internships.

Thanks again all!

 
Best Response
Neuroinvestment:
Haha I won't pretend that isn't an influencing factor :-),but in all seriousness academics and even physicians are getting hit hard. Research funding is at an all time low (NIH less than 1% at times) and tenure track positions are almost non-existant. Reimbursement for clinicians is getting worse and the bankruptcy rate for those in private practice is rising. I think more and more scientists and physicians will begin to transition into finance related endeavors.

I will definitely get an MBA, but I need some more work experience first. Hopefully something like ER or consulting should do that trick with some internships.

Thanks again all!

Ya, my younger brother is in med school right now and echoes those same thoughts daily. Unfortunately, by the time you get to that point in your education for medicine you have somewhat committed to see it through. Better him than me haha.
 

I'll chip in...

My background: PhD in Molecular Biology (decent program, but nontarget for banking) + MBA (state school, no relevant experience) Did 2 IB internships, 1 VC internship. Tried to land an IB Associate gig, ended up doing BD/CF for a biotech company (currently there).

Here is the deal: in IB, especially for BB, a lot boils down to your school. It is even more important if you are from a nontraditional background. If you are a nontarget, your chances are very slim (winning a jackpot slim).

Now on the approach: do not bother with banks/groups that are not Life Science/Pharma/Biotech related. Waste of time. Focus on groups/firms where your background is an advantage. ER is going to be easier than IB simply because in ER you have to understand the business, and the industry. I know several people who landed ER gigs after a PhD in life science. In IB it is not that important to know the technology/science behind the business in detail. Another thing is that on IB analyst level your science background does not add any value - associate and up is where it will matter a bit.

Consulting will be an easier route if you have the mental firepower to do cases well. It does not require prior experience, and they hire advanced degrees in sciences quite easily. In IB even landing an internship in a boutique will be a problem. Possible (I did two), but not easy. FT IB positions - that is another ball game. Theoretically - doable with some effort. In practice - possible, but unlikely.

If you still want to go the IB route, get an internship at the boutique first. If you have that, people will at least talk to you, while without an internship you are pretty much done before you start opening your mouth.

Working as a scientist for a biotech company is not going to get you anywhere. It is a dead end - once you are on a research track, it is very hard to get out of it, and the longer you stay, the harder it is to get out. MBA is not going to save you if you get stuck on the research track.

What I've seen people doing is the following: PhD -> Field Applications/Sales -> (MBA, optional) -> BD (associate/manager) -> VC/IB (associate/VP or principal)

Jump to a BD side will be greatly facilitated by an MBA/prior experience in business. Another tough jump is BD-> VC/IB. I will let you know how to do that after I'm there in a few years :)

 

Thanks a lot for the information, I really appreciate your insights. I have been doing a lot of self education over the last month and I have registered for some summer business courses (basic finance and an investing course) at Harvard (where I also am an instructor). Since I do not have the time to develop a a broad detailed understanding of concepts, what are the important things I should learn and focus on? Any recommendations on good books that I should start studying?

 

Understanding your particular industry (biotech/diagnostics/pharma/etc) will be the key if you are trying to get into a boutique. This is the only value add comparing to a business major. You have to have a clue about business models of different companies in that industry, how do they make money, how do they get funded, how do they get acquired, what are the recent deals, what are the hot technologies, what are the trends. You'd have to do your own research on that. There is no centralized source for this information, but you can find thousands of sources on various aspects.

Also some general understanding of business concepts - market share, competitive strategy, some basic accounting, how does a VC or a bank works, etc. A lot of that you can find on WSO and M&I.

 

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