How does Medical Discovery Management Corp., the manager of the CMDF Funds, minimize the risk of portfolio companies that fail?
Our expert management teams are responsible for due diligence. The teams are very selective in the deals they choose to make, since they have access to such a wide range of qualified investment opportunities. In the biotechnology sector companies fail for a number of reasons: their lead product may fail to demonstrate significant benefits in human clinical trials; they may be unable to protect their intellectual property and gain market exclusivity; new discoveries render their technologies obsolete, etc. Biotechnology discoveries are occurring almost daily and this means that the technology risks of a potential venture investment are far more uncontrollable than the commercial risks of technology development.
