How should investors evaluate a biotech opportunity?
Short answer: Rick compared insulin's historical 58% approval rate from phase one with oncology drugs' 5% rate. That comparison makes the type of therapy part of how he frames risk, alongside validation and the team.
Richard C. Wilson interviews Rick of Thermalin Inc. About the company's insulin technology and what investors should examine during due diligence.
Rick on testing the science and need
Rick said investors should check whether the science is right and whether the need is real. He called those central parts of due diligence. (at 9:44)
Rick on outside validation
Rick said two major pharmaceutical companies had committed to Thermalin, one had invested, and another was going to take equity. He also said Thermalin had won a $3 million NIH grant and that the NIH had vetted the work. (at 9:44)
Rick on assessing the team
Rick said investors need to dig into the team. He said the team should be able to solve a real problem, find a technology solution, put it together, and work through setbacks. (at 12:53)
"And of course, you have to dig into the team."
From Richard's exclusive Billionaires.com interviews
Lessons from Richard C. Wilson's one-on-one interviews, as published on each interview page.
- Michael Lee-Chin: Invest in what people will do next. He saw that his generation would shift from consuming to saving and investing. He chose wealth management companies over banks and insurers to avoid underwriting losses.
- Tom Rosen: Buy when the market is down. Tom bought a lot when the stock market almost collapsed and made a substantial profit. In the year that followed, oil and gas surged. So did some tech.
- Tim Draper: Teach children about money early. Give them a small allowance and have them earn and invest money in the stock market. Over time they learn to ask sharp questions about how a business works.
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Frequently asked questions
How should investors evaluate a biotech opportunity?
Rick compared insulin's historical 58% approval rate from phase one with oncology drugs' 5% rate. That comparison makes the type of therapy part of how he frames risk, alongside validation and the team.
What expertise did Rick say Thermalin's scientific founder had?
Rick described the scientific founder as an expert in the structure and function of the insulin molecule. (7:51)
Sources
Quotes are copied from the video captions and checked against the transcript. Timestamps link to the moment in the video. General information only, not legal, tax or investment advice.