Investment · Life Sciences · Risk Management

Why Securities Class Filings are a Reality for Publicly Traded Companies

A great mid-year report by Cornerstone Research on Securities Class Action Filings for the first half of the year.  I recommend you check out the full report which you can find here.

These visuals really speak for themselves but the big takeaway is that if you are publicly traded company the chances of being subject to a Securities Filing are rising.  In 2017, 8.4% of exchange listed companies were subject to a filing and in 2018 it is projected to be 8.5%.

Pct of US Exchange Listed Companies subject to Filings

If you are a member of the S&P 500 the chances of a filing are even higher at 9.6%.

Pct of SP 500 Companies Subject to Core Filings

Breaking this down even further, the industry you are in can change the odds dramatically as well as the chart below demonstrates.

Heat Map

The clients I work with are in the Life Science and Healthcare space and this is how filings breakdown in that group.

Life Science Filings by subgroup

I will dig a little deeper on this at a later post, but I believe companies need to believe a Securities Class Action filing is inevitable and prepare accordingly.

Once again I recommend you check out the full report from Cornerstone Research which you can find here.

Daily Reads

Monday Morning Healthcare News

Welcome to a new work week, the final couple of days of July.  Here is what I’m reading this morning:

  • The Week Ahead In Biotech: Conferences, PDUFA Dates, Earnings And IPOs (Benzinga)
  • Would AbbVie’s top execs really pull the trigger on a $30B M&A deal? Why, yes, actually (Endpoints)
  • 7 medtech stories we missed this week: July 27, 2018 (Mass Device)
  • What is the hardest thing about medtech IoT? (Medical Design & Outsourcing)
Daily Reads

Friday Morning’s Top Articles

Happy Friday!  Here is what I am reading as we head into the weekend:

  • Talk about hitting on a lot of points, super insightful article – Regeneron’s Billionaire Founder Battles The Drug Pricing System (Forbes).
  • Bio Roundup: An Alzheimer’s Head-Scratcher, OUTBio, GSK & Gilead Shakeups (Xconomy)
  • When healthcare devices go over the counter. An important trend contributing to the consumerization of healthcare is the transformation of select prescription categories to over-the-counter (Med City News)
  • Six big things: Funding for females and cash pouring into China shape the week in VC (Pitchbook)
Daily Reads

Thursday Morning Headlines

Yesterday was dominated by Biogen’s news on their Alzheimer drug, but there was other news including Sarepta getting slapped with a clincial hold, Gilead CEO stepping down and, although not Life Science related, Facebook getting crushed after their earnings.  Here is what I’m reading:

  • Yesterday afternoon Eisai & Biogen Revealed Promising Alzheimer’s Data But Questions Linger (Xconomy)
  • How Often Do Urgent Care Clinics Offer Antibiotics When They Shouldn’t? The answer it seems is too often. I wonder why antibiotics are becoming less and less effective. (Forbes)
  • These 10 startups made the cut for XLerateHealth’s sixth cohort (MedCity News). Ten Startups Selected for Inaugural Comcast NBCUniversal LIFT Labs Accelerator, Powered by Techstars (Venture Beat)
  • Help wanted: New CEO to run Gilead as John Milligan steps down (EndPoints)

Check out my podcast, Life Sciences Rush Hour – Investing, News, Risk Management and any other topic impacting the space, on Apple Podcasts!

Financial Loss · Insurance · Risk Management

When Your Insurance Broker Masquerades as a Specialist

 

Is your insurance broker actually specialized in your industry or are they half-specialized?  You are probably asking yourself – “Matt, what are you talking about?  What does that even mean?”  Let me explain.

What most insurance brokers do is tell you they are specialized, but really are only giving you the specialists for one line of coverage, which in the life science sector is Products Liability.  I would call this broker half-specialized, they have highly specialized brokers for the Products Liability but those brokers do not touch the other lines of coverage.  Instead, they typically hand off the other lines to what I would call the “general industry” or “middle market” broker who does not necessarily understand the nuances and risks that a biotech or medical device company might encounter.  The individual broker could work on a five real estate companies, a manufacturer of widgets, a tire distributor and one biotech company.  Does that sound like a specialist?  Does that make you feel comfortable?

Think about where your greatest risk is if you do not have a commercial product.  Your biggest risk is probably not the Products Liability due to informed consents, protocols and defined patient count but on the other lines of coverage where you are getting the non-specialized broker.  To me that does not make sense.

I work in the life science industry and I consider myself specialized, not half-specialized, but 100% specialized.  I can say this because I do not outsource certain policies to brokers that are working on accounts outside of the Life Science industry.  In our group we work with life science and healthcare clients exclusively, across all lines of coverage.  We would love to demonstrate to you what the difference is between the two; we can do this by reviewing the policies you currently have in place and giving you our findings. Message or email me to discuss further.

Daily Reads

Wednesday Morning Headlines

Here is what I am reading this morning:

  • Glaxo’s New Research Chief Loves Big Pharma. Now He Has To Fix It (Forbes) – Highly recommended read!
  • 23andMe is raising up to $300M on top of what they have already raised, valuing them at $2.5B (PitchBook).

23andMe

  • Venture capital firms invested more than $738 million in Medtech during the second quarter of 2018, $1 million less than the first quarter (Medical Design & Outsourcing)
  • Today is the big day – Biogen’s Spinraza zooms through blockbusterland, but analysts are fixated on Alzheimer’s data (FiercePharma)
Daily Reads

Tuesday Morning Headlines

Good morning, this is what I’m reading on this hot and humid Tuesday morning:

  • For Scientists Racing to Cure Alzheimer’s, the Patient Recruitment Math Is Getting Ugly (NY Times)
  • Anthem In Telehealth Deal With Samsung And American Well (Forbes)
  • An Enormous Study of the Genes Related to Staying in School. Researchers have found 1,271 gene variants associated with years of formal education. That’s important, but not for the obvious reasons (The Atlantic).
  • FDA releases ‘Biosimilars Action Plan,’ aiming to accelerate innovation. Agency will create new review tools and other resources to encourage development of biosimilars (MedCity News)