BIOTECH INVESTMENT COURSE

Learn about investing in publicly-traded biotech companies

Life science companies aren't the easiest to understand. Join us to learn how to invest wisely! This course by the HBC aims to impart the necessary skills to enable smart investment decisions based on sound scientific and financial analysis using publicly available resources.

Over two months, 40 selected participants will learn the ins and outs of analyzing life science companies from a lineup of esteemed speakers, while concurrently working in teams of 5 to produce and deliver a final investment pitch to a panel of professional biotech investors.

Curriculum

Session 1: Introduction to Biotech Investing

  • Course syllabus and expectations

  • First principles of R&D - The role of due diligence

  • The C-suite, Board of Directors and Scientific Advisory Board

  • What to look for in good (and bad) management

  • Conference calls, earnings calls and biotech equity research analysts/reports

Session 2: Clinical research analysis and the FDA regulatory process

  • Overview of clinical research phases and the IND-filing process

  • Clinical trial design, evaluation, and considerations (such as adverse events and safety profiles)

  • Pathways to FDA approval (priority review, fast track, breakthrough, orphan designation, etc)

  • Overview of the US reimbursement system as a hurdle to pricing and market uptake

  • Case studies

Session 3: Financial Analysis and Resources

  • Common ways that biotechs raise capital: equity (VCs, angel investing, IPO, PIPEs, Direct Offerings, Rights Offerings, etc.) and debt (loans, bonds, etc.)

  • Company financial resources: Bloomberg, Yahoo Finance, Crunchbase, etc.

  • Overview of types of SEC filings: 10-K, 10-Q, 8-K, S-1, etc.

  • Basics of Financial Statements: Balance Sheet, Cash Flow, Income Statement, Key Ratio Analysis

  • Calculating cash and burn rate

Session 4: Market Evaluation and Commercial Risk

  • Forecasting market size and share and estimating drug revenues

  • Overview of intellectual property: patent law and know-how

  • Landscape analysis: comparing competitors and SWOT analysis

Session 5: Company Valuation Methods

  • Developing a Thesis

  • How to weigh the various types of risk

  • Various valuation methods: DCF, comparables, EV/EBITDA, P/E, etc

  • Red flags and positive indicators

Session 6: Biotech Stock Catalysts

  • Understanding what biotech catalyst events are

  • Understand why catalyst events are important and how they can affect long- and short-term stock price changes

Session 7: Open Community Keynote Lecture

  • Peter Kolchinsky, PhD - Managing Partner, RA Capital

Session 8: Investment Pitch Competition

Details

Timeline: Two-month program, held weekly in the evenings every spring semester.

Format: in-person; space limited to 40 people.

Open to: Harvard-affiliated students and trainees

Application Deadline: Spring 2024 application is now closed. Applications for Spring 2025 will open in January 2025.

For any questions or clarifications, contact the HBC Investment Course team at hbc.investmentcourse@gmail.com

Course Information & Policies

Attendance

There will be 7 sessions of this course, followed by an eighth session for group presentations.

You will receive a certificate at the conclusion of the course, provided that you attend all the instructive sessions AND do the group presentation at the final session. We encourage you to attend all the sessions, as they unlikely contain redundant content.

Stock Recommendation Assignment

Participants will be divided into teams of 5, and will be expected to deliver a 15 minute pitch followed by a 5-10 minute Q&A to a panel of judges at the 8th and final session of the course.

You are free to choose the company you wish to study. The only requirements are that the company has to be working on a therapeutic(s) and publicly-traded on a stock exchange in the United States. While we do not require a fixed pitch structure, it should at least include the topics covered in the course, namely:

  • Management (Board of Directors, Scientific Advisory Board, etc.)

  • Scientific foundation and clinical trial data (if any)

  • Financial analysis

  • Landscape analysis (patent strength, competitors in the market, etc.)