SAN FRANCISCO, CA--(Marketwired - February 11, 2016) - Raghuram "Ram" Selvaraju of Rodman & Renshaw has made the micro- and small-cap biotech universe his specialty, and his track record is impressive. In this interview with The Life Sciences Report, Selvaraju, a former big pharma researcher, details four growth names that could follow in the hallowed footsteps of previous winners.
Included in this interview are: Athersys Inc. (
The Life Sciences Report : We have seen a rather dramatic slide in valuations, and it seems to have hurt some companies with good prospects, as well as the nascent, preclinical-stage companies. Does that sum it up?
Ram Selvaraju: Where we've seen the most damage by far has been in the small- and micro-cap space, where a significant percentage of stocks trade below cash or even at negligible enterprise value. This is even true in cases where companies have positive clinical data, and even if they have risk-mitigated drug development projects ongoing -- and sometimes even in cases where companies are generating revenue and could potentially obtain profitability in the near term. From our perspective, there has been a flight to quality, but there has also been a rotation out of the sector at large.
TLSR: What will be the upshot of this kind of selloff? When small- or micro-cap companies need money to get their drug candidates into Phase 2 or Phase 3, will they have trouble raising the capital? Will they have to give away too many warrants with shares?
RS: Clearly, companies are no longer finding access to capital as easily as they could a year or two ago. People began calling the top in the biotech sector in mid-2015, and we saw investors start to exhibit reluctance to…
Continue reading this interview: Healthy Biotech Growth From Four Seedling Stocks: Raghuram Selvaraju of Rodman & Renshaw
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DISCLOSURE:
Athersys Inc., Cynata Therapeutics Ltd. and CorMedix Inc. are sponsors of Streetwise Reports. Raghuram Selvaraju had final approval of the content and is wholly responsible for the validity of the statements. Opinions expressed are the opinions of Mr. Selvaraju and not of The Life Sciences Report or its officers. The interview does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.
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