2014 Letter to PSIC Partners

Dear PSIC partners,

PSIC is now 2 years old. Thank you all for making this far together.

What we have achieved

  • We studied another 4 projects, including detailed analysis of 5 companies out of 28 candidates.
  • Our Chelsea (CHTP) investment turned fruitful
  • 4 out of 7 companies we studied are acquired by larger companies:
    • Chelsea by Lundbeck
    • Durata by Actavis
    • Cubist by Merck
    • Intermune by Roche
  • The other three companies:
    • CELG is already a giant itself
    • ACRX, ACAD are still developing their lead candidates. We believe in their value. They will eventually be successful and are likely to be acquired.
  • For project 6, we switched our candidate companies from ones pending FDA ruling to ones planning to file NDA by current quarter.
  • Our AcelRx (ACRX) prediction taught us a precious lesson that approval does not always come first cycle. After reading research articles, now we know the success rates depend on many factors. And CRLs can have various causes and eventual outcomes.

Our Club

  • Club dynamics becomes more mature and healthy. We attracted lots of new talents (yes, I mean YOU! 🙂 ). It’s because club goal aligns well with the interests of partners.
  • We become more confident with our club. For at least two reasons:
    • first, we see value in innovative drugs, how they address unmet medical needs, how they improve the quality of people’s lives. That’s the “Holy Grail” of value for healthcare companies. Money is simply a by-product. Not to mention, this value has been validated by series of acquisitions of our candidates.
    • second, we see value in our fellow partners. MDs, Scientists, Researchers, Consultants, Specialists, etc. We learned so much directly from each other and from discussion as a group.

What we look forward to in 2015

For next year, let’s study another 4 projects towards starting a fund by 2017. The big market may embrace a climax in 2015. Be careful and keep calm.

Disclaimer: My current club-related holdings

I have accumulated 253 shares of ACRX (average price $7.93) with 4 purchases spanning Jun – Dec 2014.