Comments on: Six Red Flags to Watch Out For in a Biotech, From Dendreon Co-Founder Chris Henney

By: Xconomy: Five Red Flags Investors Should Watch for When Evaluating Biotech Investments | DIALED-IN

Thu, 17 Dec 2009 22:39:24 +0000

[...] Xconomy.com to read the rest of Henney warning signs, and leave your comments [...]

By: Luke Timmerman

Luke Timmerman — Thu, 22 Oct 2009 17:15:05 +0000

JHThree is right. The “top management without a scientific background” and “hard to understand science” were closely related in Henney’s talk. I split them because I thought he actually was making a distinction between the two. Some non-scientific managers are very good at explaining complicated science. Sometimes the scientists themselves have a harder time explaining it, and if they do, that’s a red flag that Henney was calling attention to.

By: JHThree

JHThree — Thu, 22 Oct 2009 16:19:29 +0000

AJB, I’m guessing Henney considered “top management without a scientific background” and “hard to understand science” as one category and the author split them up.

By: Red Flags in Biotech | Pharma Marketer

Red Flags in Biotech | Pharma Marketer — Thu, 22 Oct 2009 15:30:09 +0000

[...] two-part interview with Christopher Henney, who helped to found Icos, Dendreon, and Immunex. The part I found most interesting, naturally, was the section entitled “Five Red Flags of Biotech”. (Note to the Xconony [...]

By: 8 Red Flags of New Biotechs | Reaction Radio

8 Red Flags of New Biotechs | Reaction Radio — Thu, 22 Oct 2009 13:51:22 +0000

[...] with Christopher Henney, who helped to found Icos (ICOS), Dendreon (DNDN), and Immunex. The part I found most interesting, naturally, was the section entitled "Five Red Flags of Biotech". (Note to the Xconony [...]

By: AJB

AJB — Thu, 22 Oct 2009 13:35:13 +0000

There are _6_ flags listed, not 5.

By: CMCguy

CMCguy — Mon, 19 Oct 2009 03:08:58 +0000

While in general agreement with these Flags and do echo Richard Gayle’s point about communication would suggest “too much” focus only on science can also be a negative. A good many Biotech failures have not been due to the science or lack of scientific management but because reach a stage where can not (continue to) fund or transition from the bench level to development. A problem often is the science can actually be hard, or at least difficult to present in simple explanations, and although may be able to convey well to other scientists there has to be effective translators to get the message across.

There has to be broad balanced expertise and leadership to turn ideas from more than knowledge and into practice. Beyond good business connections and organizational flexibility mentioned in previous article need people who know development, manufacturing, regulatory, marketing and other areas.

By: Red flags of understanding

Red flags of understanding — Thu, 15 Oct 2009 20:01:36 +0000

[...] Five Red Flags to Watch Out For in a Biotech, From Dendreon Co-Founder Chris Henney [...]

By: Richard Gayle

Richard Gayle — Thu, 15 Oct 2009 19:13:24 +0000

Several of these actually indicate the inability to effectively communicate the nature of the science behind the company. No scientific background, no worries and incomprehensible science all indicate a real lack of scientific understanding.

If you do not fundamentally understand the science, you can not communicate the science.

When dealing with technology, especially disruptive technology such as most biotech, ineffectively telling the story of the technology so that others, especially investors, get it should be a large red flag.

Having worked with both Henney and Gillis, I can say that they are extremely good at telling the story of the science in accessible ways.

This is not about being good at hype. This is about understanding the fundamental aspects of the technological reasons for the existence of the company and presenting them to others in ways that resonate strongly enough to shake some capital loose.