For the Moment, Pharmion Helps Burnish Biotech's Image

Biotech's unique volatility and the intuition that risk will be rewarded when science and business manage to click for the benefit of patients are also powerful incentives--including for drugs that fall under Pharma's radar. That dynamic seems to be playing out for the moment for Pharmion--the rare standout in the score of recent biopharm IPOs--as it prepares to roll out its recently approved drug, Vidaza.

A story in The Wall Street Journal last month highlighted the relatively poor rate of return provided by biotech investments relative to the Dow Jones Industrial Average or even T-bonds. But the WSJ failed to capture the notion that the numbers suggest that the overall rate of return for the sector isn't the only driver of investor interest. Biotech's unique volatility and the intuition that risk will be rewarded when science and business manage to click for the benefit of patients are also powerful incentives. Hefty returns therefore should be possible--including for drugs aimed at small markets that fall under the radar of Big Pharma. And that dynamic seems to be playing out, at least for the moment, as Pharmion Corp. prepares to roll out its recently approved drug, azacitidine (Vidaza).

A hematology/oncology-focused specialty pharma in-licensor, Pharmion is the only standout, along with Eyetech Pharmaceuticals Inc. , in the score...

More from Strategy

BIO Notebook: Woodcock Calls For Doing The Right Thing, Dealmaking Remains Constrained

 

Highlights from Day Four of the BIO International Convention include Woodcock offering practical advice on rare disease trials, the sorry state of dealmaking mid-year, Novartis discussing its approach to partnering, and Generate looking for funding to move into Phase III.

ASCO: Pushing The Frontiers Of ADCs

 

Antibody-drug conjugates are a major part of the oncology pipeline, and data presented at the American Society of Clinical Oncology meeting highlight the emergence of new technologies.

Skyhawk Looks To Soar With Huntington’s Hope

 
• By 

Oral RNA splicing modulator has gone into a Phase II/III trial

BIO Notebook: MFN Pricing, Next-Gen Obesity R&D, FDA’s Rare Disease Hub & Reaction To Review Program

Highlights from Day 3 of the BIO International Convention include the realities of MFN pricing, AstraZeneca's R&D plans for obesity, the need for resources for FDA's rare disease hub and reactions to the Commissioner's National Priority Review Voucher program.

More from Business