How important is an MD/PhD for biotech HF
I’m currently in a top biotech ER seat at a BB. I still have a ways to go before Buyside (HF) recruiting. Background about my self I came from a non target with a biology major. Only reason I got this job was because I networked my ass off.
I don’t know what style of investing I want to do, but how important is a PhD/MD (I did get accepted to med school but I didn’t go and delayed starting) for Buyside recruiting particularly for a therapeutics HF. Not sure if I wanna be at a pod shop or healthcare focused fund. Will I get a fair shake at things when the time comes?
Based on the most helpful WSO content, having an MD/PhD can be quite beneficial for breaking into a therapeutics-focused hedge fund, especially if you're aiming for roles that require deep scientific knowledge and expertise. However, it's not an absolute necessity for all positions within biotech HF. Here's a breakdown of how your background and aspirations align with the insights from the WSO dataset:
Importance of MD/PhD: For roles that involve evaluating the scientific merit and clinical trial data of potential investments, an MD/PhD can provide a significant advantage. This is because these qualifications offer a deep understanding of the science behind the investments, which is crucial for making informed decisions in the biotech sector. As seen in discussions, individuals with these qualifications are often sought after for their expertise in assessing clinical risk, which is a key aspect of investing in biotech companies.
Alternative Paths: Despite the advantages of having an MD/PhD, there are successful professionals in biotech HF who come from diverse backgrounds. For instance, individuals with strong finance skills, a solid understanding of the biotech industry, and the ability to conduct thorough due diligence can also excel. Your background in biotech ER at a BB, coupled with a biology major, positions you well in this regard. Your experience in equity research, understanding of the biotech sector, and ability to network effectively are valuable assets.
Networking and Skill Development: Your success in landing a top biotech ER seat through networking demonstrates your ability to leverage connections and showcase your skills. Continuing to build your network within the biotech and finance communities can open doors to opportunities on the buyside. Additionally, focusing on developing a strong track record in your current role and gaining a deeper understanding of biotech investing strategies will enhance your candidacy.
Flexibility in Investing Style: Not being sure about the style of investing you want to pursue (pod shop vs. healthcare-focused fund) is not uncommon at this stage. Gaining more experience and exposure to different investment strategies through your current role and networking can help clarify your preferences over time.
In summary, while an MD/PhD can be a significant advantage for certain roles within therapeutics HF, your current trajectory also presents a viable path to the buyside. Focusing on excelling in your role, continuing to network, and gaining a deeper understanding of biotech investing will be key to your success.
Sources: Biotech finance part 2: valuation methodologies and modeling considerations, Biotech finance part 2: valuation methodologies and modeling considerations, Biotech finance: from IB to VC / HF to funded startup, Ask Me Anything : Anon1254, Ask Me Anything - Buy Side Systematic Quant
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Most have the md or phd, some don’t. Its probably 80/20. Not having it will also limit what you look at the later stage assets. Don’t expect fo be diving into preclinical co’s or super early stage stuff without the advanced degree
Fair enough I suppose. But would I get a fair shake at smid cap biotech on the Buyside?
The bar will be higher but its certainly possible
Target funds where others don’t have an advanced degree (Ecor1 Redmile etc, happy to name others). Biggest thing is actually having a good pitch or multiple ready, knowing your coverage perfectly and understanding the landscape, and being able to consistently find great ideas. The barrier to entry is much higher without advanced degree but typically those without it are on average better at the job I’ve noticed.
Interesting you say that they’re better at the job. Good to know thanks! Fyiy I did crush my MCAT and get into a decent med school. Could still go get the two letters behind my name, but is the juice wirth the squeeze?
Fwiw*
Congrats on MD acceptance… depends how good the med school is, but actually would generally say no if ur interested in biotech public investing. If you’re interested in VC, Entrepeneurship, Pharma BD/Ops.. it can help a ton. You seem to already know what you want to do (investing) and have a clear path to get there (BB ER). I wouldn’t do it.
By chance could you name some others where an advanced degree isn't as necessary.
MD is too much of a roundabout & challenging route just for a HF goal (HF & the like are often an afterthought-decision during/after medical school—not the purpose of entering).
I mean the purpose of me even applying to med school was to do something challenging. My brothers a doctor but is now at MBB (never applied to residency). Seems like clearly the most challenging graduate school even to get into.
I just don’t want someone to discount what I know in biotech / pharma from the lack of an advanced degree. Tbf you are right is that is seems like just a vanity play in respects to the letters. I see this guy at GS who has a PhD in environmental science working on oncology… (not saying his good or bad at his job but seems like they only hired him because of his PhD)
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