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Alternative Market Briefing

RA Capital still bullish on biotech despite headwinds

Friday, December 30, 2016

Bailey McCann, Opalesque New York:

Biotech as a sector has had an interesting year. A handful of botched clinical trials at the beginning of the year made for rocky investment performance at some big name firms. Public opinion of the pharmaceutical industry also hit new lows amid drug pricing scandals. But RA Capital, a $1.1 billion biotech investment firm remains upbeat on the sector.

"We're at an inflection point in biotech where there is a real push for treatments to stand out," explains Rajeev Shah portfolio manager and managing director at Boston-based RA Capital in an interview with Opalesque. "There was a moment when incremental treatment improvements could offer investors an upside, but not so much anymore. We're really focused on neglected or misunderstood areas. That's where we see the greatest opportunity for disruptive treatments to come in and create value."

RA's focus is on making investments in public and private healthcare and life science companies that are developing drugs, medical devices, and diagnostics. The firm is involved in private, IPO, and follow-on financings for its portfolio companies, and maintains a staff that seems more like a medical research shop than an investment company. RA runs what it calls TechAtlas, a research division headed up by scientists that maps out the competitive landscape of treatments the firm might invest in. From there, RA can put its weight behind companies that it feels a......................

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