Beginner's Mind

MM 5: Rich Masters - Investing in Biotech: Risks, Rewards, and Realities

June 09, 2023 Christian Soschner Season 4 Episode 26
Beginner's Mind
MM 5: Rich Masters - Investing in Biotech: Risks, Rewards, and Realities
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Show Notes Transcript

Entrepreneurs and investors often grapple with the complexities of the biotech industry. The high risk associated with drug development, coupled with the intricate regulatory environment, can make biotech investments seem daunting. Moreover, the need for substantial capital and the long timeline for potential returns can further complicate the investment decision.

This clip provides a comprehensive overview of the biotech investment landscape, offering valuable insights from industry experts. By watching this clip, you will understand the challenges and opportunities in biotech investments, learn about the importance of patient capital, and discover strategies to mitigate risks. This knowledge can empower you to make informed investment decisions, potentially leading to high returns and contributing to advancements in healthcare and medicine.

📖 Quote:
(04:44) And we would have lost all of our money. And that's what investors have to go through every day. And so we're trying to put it in language so that every Joe understands that if you price fix these drugs, you will stop the cures of the future.

⏰ Timestamps
00:00:00 "High Stakes in Biotech Investing"
00:01:24 "Standing Up for Science"
00:02:36 "Price Fixing Stifles Innovation"

Watch the full video:

💡 LINKS TO MORE CONTENT
Podcast: https://beginnersmind.buzzsprout.com/779930/12959749
Rich Masters: https://www.linkedin.com/in/rimasters/
Christian Soschner: https://www.linkedin.com/in/christiansoschner/


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00;00;00;09 - 00;00;20;11
Speaker 1
Already most investors, when they invest nine out of every $10 that are invested in biomedical and drug innovation. Nine in $10 fails. But that $1 that works, it comes up with more than eight, which saved the planet. Right. And so it's really an important ecosystem. And we need to protect it.

00;00;20;25 - 00;00;41;13
Speaker 2
These are the words of rich masters, the chief marketing and public affairs officer of that biotechnology innovation organization. Navigating the complexities of the biotech investment landscape can be a daunting task. The balance between risk and reward often seems elusive.

00;00;41;27 - 00;00;44;21
Speaker 3
And over drug costs about 3 to $4 billion.

00;00;45;04 - 00;01;02;08
Speaker 2
In the next 5 minutes, we delve into a conversation with Masters as he reveals the intricate dynamics of biotech investing, shedding light on the high stakes world of biomedical and drug innovation, he warns.

00;01;02;18 - 00;01;17;06
Speaker 1
And we would have lost all of our money. And that's what investors have to go through every day. And so we're trying to put it in language so that every Joe understands if you price fix these drugs, you are going to stop the cures of the future.

00;01;17;16 - 00;01;24;03
Speaker 2
Stay tuned as we get deeper into the financial dynamics that drive the future of biotech.

00;01;24;23 - 00;01;51;09
Speaker 1
Already, most investors, when they invest nine out of every $10 that are invested in biomedical and drug innovation, nine in $10 fails. But that $1 that works, it comes up with M.R. and eight, which saved the planet. Right. And so it's really an important ecosystem and we need to protect it. And science, science and scientists are not very good at organizing, pulling themselves together.

00;01;51;14 - 00;02;10;17
Speaker 1
And that's what bio wants to do. We think that the collective power of the industry should be on display in Boston, and we certainly fully intend that doing that, signing people up for action and trying to get people to stand up for science, better fact, we're going to have a a booth. And I would love for you to go by and do this.

00;02;10;17 - 00;02;32;25
Speaker 1
It would be great to have celebrity come and do this. But why you stand up for science? We're going to have people cut their own videos at our Bio international convention at the bio pavilion. You can go and cut your own video. I'm here. I'm standing up for science and this is why I'm standing up for science. It's so important that the industry speak with one voice and only bio.

00;02;33;06 - 00;02;35;19
Speaker 1
Our organization can do all of that.

00;02;36;06 - 00;02;56;18
Speaker 3
Now, when you fix the problem, I couldn't agree more. When you fix the prices. I mean, the last numbers I have is that these days an over drug costs about 3 to $4 billion. When I look at all the failures that we have to count in and all the processes and this money has to redeem all the sunk costs in the development.

00;02;57;03 - 00;03;09;03
Speaker 3
If you don't let investors redeem their investment, then they stop investing in innovation and then the innovation engine stops and we don't get any new tracks on the market and we can't fix the health problems.

00;03;09;16 - 00;03;32;08
Speaker 1
You're right. And you know what? One of the things we're trying to explain to policymakers, because let's be honest, policymakers, politicians, they don't understand this complex ecosystem. So one of the things we use to explain this is let's say we decide we are going to there's that there is a pristine piece of land in Berlin. It is up on a hill.

00;03;32;09 - 00;03;52;17
Speaker 1
No one's ever seen it, but it's been owned by a family trust for decades. For generations, Right. No one has ever sold it. Well, all of a sudden, the family's patriarch dies and the kids decide that they're going to sell this pristine piece of land. So what happens is it goes for hundreds of millions of dollars. Well, let's say you and I are investors.

00;03;52;24 - 00;04;13;26
Speaker 1
We decide, okay, we're going to put a bunch of money into this beautiful piece of property and we're going to turn it into condos that we're going to rent out. So we invest all of our money and then we invest in changing it all around. And then the German government would come in and say, by the way, we have a housing shortage in Berlin.

00;04;14;01 - 00;04;34;11
Speaker 1
The most you can charge for this is about $500 a month, and we would have lost all of our money. And that's what investors have to go through every day. And so we're trying to put it in language so that every Joe understands if you price fix these drugs, you are going to stop the cures of the future.

00;04;34;11 - 00;04;38;28
Speaker 1
We can't do it. So we need to stand up for science. And that's what are going to be doing in Boston in June.

00;04;39;09 - 00;05;03;17
Speaker 3
That's it. That's very good to hear. That's very good. Let's not step into the European politics because you're not far from the truth with your example and I will because I think because I have some time. If you have more time or citizens, just stay with a brief bio and vote for this podcast episode. Let's put one question to you.

00;05;04;11 - 00;05;22;07
Speaker 3
You mentioned bio in Boston that you start preparing the bio in San Diego already. Tell me a little bit more. What is the hard work of your team in the background so that the attendees understand how much passion and effort runs into this event? What is your team doing in preparing this bias?

00;05;22;24 - 00;05;55;10
Speaker 1
So we you know, there's a lot of logistics that go into this. So you were there last year and you saw the floor filled with exhibits from people who, you know, you want to do business within the biotechnology space. Boston when we left San Diego last year, 85%, 85% of the space in Boston was already sold. We're already selling space for San Diego 2024 already.

00;05;55;18 - 00;06;25;01
Speaker 1
So we have to map that out. We start mapping that out. We start planning with the speakers are going to be we start planning the you know, what some of these sessions are going to be like. We have to start lining up sponsors. You know, Bio International convention is not inexpensive to produce. It is a big, massive show and we rely on all of our big sponsors and partners, and we have a lot of terrific sponsors that are alongside the ride with us.

00;06;25;08 - 00;06;41;07
Speaker 1
And so we'll be working on those sponsors because it's an expensive endeavor. We want them to be our partners and we want to make sure we recognize their contributions.