The SFAF Biotech-Healthcare sector group, chaired by SFAF member Fabrice Aurousseau, met on Tuesday March 12, 2024 to take an overview of the sector's challenges.
Unanimously alarmed by the phenomenon of massive discounts and market take-out of these companies, they wished to raise awareness of the best practices to adopt.
How do we explain these telluric shifts?
The regulatory changes planned by the MIFID2 directive do not encourage the coverage of small-cap companies by sell-side research. Small biotech and medtech don’t escape this lovelessness and suffer from the lack of follow-up from research and the absence of investors.
Despite the development of short-, medium- and long-term financing arrangements, the financial equilibrium of these post-IPO companies remains very fragile. The Biotech-Health sector group is well aware of these difficulties, and is keen to propose alternative options (analysis of foreign success models, crossover funds, etc.) in order to educate and prepare the various market players for the sector specificities. If you are interested in the works of the sector group and would like to join it, please contact Alexiane Bellone, head of SFAF commissions, working groups and sector groups, by email.