Thursday, February 12, 2009

Bailout for biotech?

Fierce Pharma has an opinion piece by Daniel J. Nevrivy, Ph.D. the founder of Nevrivy Patent Law Group, :

The global financial crisis and economic downturn has created a world of extraordinary government intervention in markets and industry, unthinkable even a year ago.

Mohammed El-Erian, CEO of the bond investor PIMCO, recently advised investors that they should position their portfolios predominantly under the umbrella of government support, in securities in sectors that the government will not allow to collapse.

But what industries and/or companies deserve to be saved, and which should be allowed to fend for themselves? Ask a half dozen officials and you are bound to get half a dozen different answers. The lack of uniformity and ad-hoc nature of the government's response to date have no doubt contributed to the uncertainty and volatility in markets. This is why, as El-Erian aptly points out, only a thin line separates courage from stupidity, and investors should follow the government's lead, and not try to anticipate their actions.

Educational background of Nevrivy:

J.D. George Mason University
Ph.D. Molecular and Cellular Biology, Oregon State University
B.S. Biology and B.A. Chemistry, Trinity University (TX)


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