Healthcare IB vs Biotech ER...OR GO BUYSIDE FIG?
Hi everyone,
I'm 1.5 years into a job in ER covering FIG. Do you think it would be more realistic for me to break into healthcare IB or biotech equity research? I have access to friends who are working in both. I also have WSP courses on healthcare IB, healthcare PE guides, and access to sell-side biotech reports and models. I'd like to maximize my pay and seniority at all levels. Given that I am currently 24 years old and in a comfortable spot, I would like to work for a high ranked II team or a top healthcare banking group.
Having worked in research, I've spoken to some senior biotech analyst and associates at other banks and feel comfortable engaging them. However, I never interviewed for banking and am not sure what to bring to the table; When I reach out to people in ER, I send report and model samples. I don't think if there is an IB equivalent to show I know my stuff.
Alternatively, I suppose I could start recruiting for buyside FIG roles or switch to FIG banking. My hesitation with staying in FIG is that I know my MD makes ~500K, whereas biotech MDs make $1-4M according to some articles. Banking opens the door to PE and seems to be more lucrative than research.
Any and all feedback is appreciated, and I'm happy to answer questions about my background if it would be helpful to anyone.
Know two people who transitioned from equity research (FIG) to FIG banking. I think it's tough without MBA but I think it's doable.
I am interested in FIG buyside as well.
All of the top biotech ER analysts have an MD or a PhD. Very difficult to get to that level without one of those degrees due to the complexity of the work. In healthcare IB, you need far less knowledge of underlying biology to succeed. Probably the most realistic route if you're set on heatlhcare
OP here. Thanks for the input. I used to think that first part too. I'm personally speaking with a biotech MD with no advance degrees and an econ undergrad degree, so I think it's possible. I've also spoken with a biotech MD who said he/she hasn't taken a science class since HS. Both of them are top 10 II analysts.
My question is, if biotech ER is harder to get into, is the field lucrative enough in terms of exits/comp to warrant that?
Most of the guaranteed $3-4 million contracts are coming from people with advanced degrees and years of being number 1 or 2 on the street. More of the exception than the rule. It also has a bit to do with what vertical of biotech research you are in to be fair. I am not really sure about comp unfortunately at the lower levels or even the non-top tier of biotech ER MDs. As far as exits, an analyst with a strong track record in biotech is worth his weight in gold on the buyside.
Just my thoughts from what I’ve heard from friends and coworkers. I think you’re pointing to the exceptions of those who don’t have an advanced science degree. Yes, it is possible to still move without an advanced science degree, but you have to prove yourself to the respective hiring analysts.
As for the quoted $1-4M comp you’ve probably read from the WSJ article, those are for the reputable analysts, where the banks had to offer a huge salary to build out those franchises. Those analysts don’t really leave because their exit opp is another bank that’ll hire them. At the associate level, salaries are pretty standardized. Maybe you get a higher bonus for helping attract biotech banking deals, but that’s uncertain. I would say your main exit opp is a HC fund just because it’s a niche sector, but I don’t know how much differently they would weight biotech ER compared to HC banking.
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