From The Life Sciences Report:
When it comes to unearthing dynamic micro-cap biotech investment opportunities, Ram Selvaraju is a master. Selvaraju, managing director and head of healthcare equity research at Aegis Capital Corp., has selected nine names destined to attract investors willing to take calculated risks, which he shares in this interview with The Life Sciences Report. He also explains why he expects 2013 will be another good year for the biotech industry.
The Life Sciences Report: Is biotech going to continue its bullish trend during 2013?
Ram Selvaraju: Yes, I think so, George. The main and important consideration is the stance of the U.S. Food and Drug Administration (FDA). There has been a lot of discussion about how the FDA has been moderating its previously risk-averse stance.
Moderation was clearly the case in 2012, when we had nearly 40 drugs approved — almost double the rate at which the FDA was approving drugs in lean years such as 2007 and 2008.
Clearly there has been a paradigm shift. We think enthusiasm for small-cap biotech stocks will continue as long as the FDA is approving drugs that ought to be approved, and doing it in a timely fashion.
TLSR: I'm wondering if that relaxed stance filters down to phase 1, phase 2, and end-of-phase 2 meetings with drug developers, to facilitate getting drugs into pivotal clinical trials.
RS: I'd point to two specific areas where this is indeed the case. First, you can look at provisions in the Generating Antibiotic Incentives Now (GAIN) Act of 2011, a piece of legislation designed to speed up the development and approval of novel antibiotics...
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