Fewer investors are putting money into new drug and device-makers because of regulatory concerns, reports Bloomberg. A survey conducted by the National Venture Capital Association found that about 40 percent of the 150 venture capital firms that responded decreased their life science investment in the last three years. "The process has gotten to be so long, and the capital required so deep, that it’s becoming more and more difficult to generate venture-type returns and therefore make it worth your while to do it," says Polaris Venture Partners' Terry McGuire.
A separate Bloomberg article says that biotech stocks are now tending to fall even after firms receive approval for their drugs. "[Investors] fear the risks of commercial disappointment," says Michael Yee from RBC Capital Markets. "That's a reflection of underappreciated commercial logistical issues with the launch, as well reimbursement hurdles at the start, and physician comfort in the first few months."