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Errors using inadequate data are much less than those using no data at all

Posted by on Jul 1, 2019 in News | 0 comments

Statistician George Box, who passed away in 2013 at the advanced age of 93, pioneered many statistical techniques bearing his name, yet is as well known for a short simple quote as anything. He famously wrote “all models are wrong, but some are useful”. By this Box did not mean models, as in fashion models, were stupid but can be fun, although perhaps such statements on fashion models could be undoubtedly true! For private equity early stage investments and evaluating variables when trying to estimate market success, Box’s quote pertains...

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Biomedical Investments Assessment using “Regression Analysis”

Posted by on Jun 17, 2019 in News | 0 comments

Today many Entrepreneurs really find it ever more risky to invest in Biomedical firms as technologies are advancing so rapidly. The decision to invest is ever more complex unless one has a good knowledge of the operations and a firms past success record and how its securities trade on the market. Due to innovation and new paradigms shifts, many Biotech companies are in early stage development and tend to be small, developing only a few promising projects focused in digital genetic developments in pharmaceutical and medical devices. Most of...

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The Joy of Sets, Huge Sets

Posted by on May 27, 2019 in News | 0 comments

The technological ability to deal with huge data sets in novel ways is revolutionizing private eq-uity early stage investment decisions. Flying by the seat of the pants will fail spectacularly in competition with data-intensive systematic computer processing. Are too many decisions predicated on like history or gut feelings? A simple demonstration is a look back at the classic Monty Hall problem. This seeming paradox which some of you heard of was based on the game show “Let’s make a deal”. Contestants were given the choice of three...

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Foreign Investments abroad in Healthcare manufacturing

Posted by on May 1, 2019 in News | 0 comments

As often as corporations seek to expand their markets in our 21st century global environment, is as often as investments and more important, time is lost due to a lack of proper regulatory due diligence. Many corporations in mature markets today seek to expand their zero sum game as well as reduce costs to manufacture by considering overseas manufacturing. It is not usual to see lost money and again lost time as internal corporate attorney’s seek local in-country law firms where new markets appear to be potential growth arenas. Understanding...

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Investment Banker’s Cognitive dissonance disorder

Posted by on Apr 2, 2019 in News | 0 comments

“Measure what is measurable, and make measurable what is not so” said Galileo Galilei, when humanity was just emerging from the dark ages. This is more than good advice but the basis of science.  Show me the properly analyzed data is a sure stepping stone to show me the money. Objective numbers are not a panacea, but are significantly better than making economic decisions on investments based on opinions in closed groups without external questioning.  If all you listen to is Fox News, Fair and Balanced or CNBC Cramer who at one time...

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Cognitive Biases in Private Equity Health Sector Investments

Posted by on Apr 2, 2019 in News | 2 comments

Mankind in its hubris and for motivational reasons defines itself by its reliance on reason. But let cite Mark Twain’s words to puncture our pomposity “Man is the Reasoning Animal. Such is the claim. I think it is open to dispute. Indeed, my experiments have proven to me that he is the Unreasoning Animal”. The human brain for all its wonders is “a flawed belief machine”. Errors in judgment are the product of the interplay of the necessary shortcomings in information-processing strategies and motivational factors.  Processing...

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Enforcing the Foreign Corrupt Practices Act (FCPA) in the Healthcare Industry: Though Bitter, Good Medicine Cures Illness

Posted by on Mar 29, 2019 in News | 0 comments

Recently, the US Department of Justice (DoJ) and the Securities and Exchange Commission (SEC) have increased enforcement of the Foreign Corrupt Practices Act (FCPA) in the healthcare sector that includes the biopharmaceutical and medical device industries. In a nutshell, the Act, enacted in 1977, prohibits the offering or payment of “anything of value” to a “foreign official” for the purpose of obtaining/retaining business or securing an improper business advantage. To this effect, the FCPA requires all U.S. companies to maintain...

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MRTS Analytics can bring valuable Cost/Capacity valuation

Posted by on Feb 19, 2019 in News | 0 comments

Imagine an early stage Biotechnology firm develops a disruptive technology. Expansion from R&D prototype to pilot production to full production often experiences lopsided unpredictable costs during the first year of ramping up and ultimately full expansion utilizing full input capacities. MRTS (Marginal Rates of Technical Substitution) can be a significant analytic tool to identify cash consumption when considering capital expansion. Sometimes firms develop a technology which has great marketability but they possess no internal resources...

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