I think that most fund managers and others of that ilk....even if they're heavily involved with biotech, their primary function is money management and not science.  I don't think you're going to find too many with PHDs in molecular biology or Genetic Engineering.

Just for fun, after typing that up...I decided to see if that in facts holds true.  Rajiv Kaul is the fund manager for Fidelity's Select Biotechnology portfolio....and when it comes to managed funds, you don't get bigger than Fidelity Investments.  Reading over his resume on bloomberg it seems he spent a long time with Microsoft, over 10 years.  According to Morningstar he has a Bachelor of Arts from Harvard....that's a bachelor of ARTS, not a BSC.

I'm not going to go any further, becuase I'm confident that most fund managers, even those managing biotech funds....that they don't have advanced science degrees.  

Now....I think we can assume that most fund managers in this space, that they have heard about CETP inhibitors.  After all these were drugs being developed by the Pfizers, La-Roches, Eli Lilys and Mercks of the Pharma world.  And based on the pipeline valuations these drugs received, it seems that fund manager types were certainly impressed.  Did they fully understand concepts like "Method of Action"?  I highly doubt it.  The science types told them it was a potential breakthrough in the treatment of CVD....then they crunched the numbers to guesstimate the potential market and assigned valuations.  

And we all know what happened.....ouchie.  No biggie though....I'm sure they all know the rules, science is science and sometimes things don't work out.  Drug failures happen all the time.

Now....I'm sure everyone knows the expression....'Once bitten twice shy'

So if fund managers start hearing about a Bromodomain Inhibitor....INHIBITOR????  Weren't those CETP drugs also INHIBITORS?  Okay...so what does this Apawhatever, what condition is the primary target?  Cardio Vascular???....You mean the same as all those failed CETP Inhibitors????  

What's that...oh but this is different?  Yeah yeah, I'm sure it is.  So who is working on this?  Teva?  GSK?  Who???  Resverwhatsix???  

What I'm saying is the bar is set very high for a small Canadian biotech developing a drug that has similarities in terms of targeted diseases and reverse cholestorol transport...to a number of failed drugs with those same attributes.  And I don't think an analyst sitting around a board room table at Fidelity is going to be telling a Fund Manager what someone by the name of BearDownArizona said on a message board somewhere.  

That's not to disparage BDZ's knowledge one iota....he is this forum's undisputed star, the only poster who could challenge him would be BKC if he posted more often. But presenting research garnered from anonymous message board posters is a perfect recipe for going from working on Bay and Wall Streets, to working at a food court.

The bar may be high....but I still think we can clear it.