Stock Talk

In a Q&A posted at Market Playground, AlphaNorth Asset Management Chief Investment Officer Steven Palmer tells The Life Sciences Report's George Mack that when it comes to pharma and biotech investments, "it is all about risk versus reward." For that reason, Palmer says he generally errs on the side of investing in established, later-stage companies. "I try to stay away from the private life sciences companies because that really implies they are much earlier stage. The earlier stage you go in biotech, the higher the risk," he tells Mack.

Mack then asks whether investing in a biotech that has yet to move its product into the clinic is a good idea. "We look for companies that are working on products that have huge market potential and situations that we view as lower risk," Palmer tells him. "We also prefer companies that have multiple products. I view biotech similar to mining companies actually. Whether it is exploration success or clinical success, the rewards can be dramatic."