Biotech Analysts That Do Well Have a Hybrid Research/Banker Role

Technically speaking this shouldn’t be allowed…. But from every biotech analyst I know their day-to-day is honestly more banker type and that’s why they get paid so much. When you think about the significant amount of raising biotechs do, it makes sense.
 

Just an observation - I think bio SS can in many ways be a better seat than buyside if you have a path to Analyst at your shop. Thinking risk/reward here

5 Comments
 

There are lots of small biotech companies that frequently raise capital, are taken out, etc… These companies may not be worth covering from an investor interest perspective, but might be worth the bank covering strictly from a banking relationship perspective. A lot of times, these covering analysts are “brought over the wall” in deal processes… and are instrumental in allowing deals to get across the line, which is a significant element of their value proposition to the bank.


I’m not sure I’d call them pseudo-bankers as the work they do is not banking work (that’s not their day-to-day, they aren’t structuring deals or anything like that), but I kind of see where you’re coming from.

 

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