The sky is not falling, yet: a Perspective

Rumors are flying about the precarious state of biotech’s specialist investor community. Let me set the record straight, the level of concern among investors is high, but their situation is not existential. Still, while big funds won’t be closing up shop in the coming weeks or months, changes to how they allocate money could have repercussions for biotechs.

Based on many conversations with investors and bankers, nearly every fund with meaningful public market exposure is experiencing some level of redemptions. When the markets are this volatile and uncertainty this high, it should come as no surprise that limited partners (LPs) are looking for ways to minimize their risk. Investors hate uncertainty...