The Weighted Average Cost of Capital (WACC) is a foundational metric in corporate finance, designed to evaluate the opportunity cost of capital and guide investment decisions. However, in the context of biotech and pharma—industries dominated by high uncertainty, skewed outcomes, and extreme risks—WACC becomes problematic. Its reliance on

The Capital Asset Pricing Model (CAPM) is one of the most widely used and taught frameworks in finance, offering a simplified approach to estimate the cost of equity. However, its application in biotech and pharma is deeply flawed. CAPM relies on assumptions of market efficiency, normal distributions, and systematic risk

It seems everyone these days is angling for a board seat. With the rise of startups and small businesses, LinkedIn profiles are awash with aspiring Non-Executive Directors (NEDs) and advisors, convinced their 15 or 25 years of corporate experience make them indispensable to young companies. The allure of wielding

It seems everyone wants to be an investor these days. Armed with a LinkedIn bio touting "angel investor" or "venture partner," they scour startups for the next unicorn. Some manage portfolios ranging from $100,000 to $500,000—no small sum, but hardly the kind of

On January 12, 2025, the European Union’s Health Technology Assessment Regulation (HTAR) came into force, introducing a centralized framework for the evaluation of medicines and medical devices across Member States. At first glance, the regulation promises to streamline processes, eliminate duplication, and expedite patient access to innovative treatments. However,

The Chartered Alternative Investment Analyst (CAIA) designation positions itself as the key to unlocking the mysteries of hedge funds, private equity, and the murkier corners of finance. It’s the alternative to the alternative, a credential for those who scoff at traditional stock-and-bond strategies. For industries like biotech

The Chartered Financial Analyst (CFA) designation once sat atop the financial world like a gold standard minted for modern markets. For decades, it promised to transform diligent candidates into masters of valuation, risk management, and portfolio optimization. But in 2024, the CFA faced a reality as unforgiving as its exams:

Welcome back to Fun with Funds, where we break down intriguing financial vehicles in plain English. Today’s guest is the SPDR S&P Biotech ETF (XBI), a fund that acts like a backstage pass to the high-stakes world of biotechnology. This isn’t your run-of-the-

SPACs and Biotech: A Cautionary Tale In recent years, Special Purpose Acquisition Companies (SPACs) emerged as a popular alternative to traditional IPOs, offering a faster route to public markets. This trend was particularly notable in the biotech sector, where companies are often in constant need of capital to fund research

Davos in January. The snow-dusted mountains, the high-altitude air of importance, and the collective hum of thousands of people all trying to solve the world’s problems—or at least network with people who say they are. It’s the annual meeting of the World Economic Forum, where