Capital Allocators – Inside the Institutional Investment Industry Rod Wong – Empty Rooms: Innovation in Biotech at RTW (Capital Allocators, EP. 310)
Apr 24, 2023
Rod Wong, Founder and Managing Partner of RTW Investments, shares his insights on the often-overlooked opportunities in biotech. He discusses his unique journey from aspiring doctor to leader in life sciences investment. The conversation dives into navigating the volatility of biotech, the importance of innovation like genomic advancements, and the strategic shift from stock picking to lifecycle investing. Wong also emphasizes effective communication and team dynamics as keys to success in this competitive field.
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Rod Wong's Career Path
- Rod Wong's career path was surprisingly linear, starting as a biotech equity research associate.
- A chance phone call led to a buy-side analyst job, then portfolio manager, and finally founding RTW Investments.
Biotech's Innovation Boom
- Biotech valuations are currently cheap after a significant bear market.
- The industry is in an innovation boom driven by cheaper genome sequencing and new drug development modalities.
Value Creation in Drug Development
- Drug development offers good value capture through pricing.
- Increased innovation should lead to more products, offsetting potential price pressures and creating value.