ERX - A thread for everyone

People should not invest in biotech/pharma unless thet have a minimum time frame of 3 to 5 years, and are investing money they are prepared to, and can afford to lose. The risk is greater when investing in am Aim listed company as the requirements for entry and very low and there is little regulation compared to listing on the main market. For many small companies, an Aim listing is the only way they can hope to generate funds and gain a more public profile. Clearly some will fail and some not. Some manage to move up to the main FTSE market, and for example that happened in the case of Oxford Biomedica, a spin off from Oxford University. It would be nice but idealistic to hope or expect that all this type of research were university funded, but that is simply not realistic.

The reason that so many bio/pharma and other high tech industries are located in Ireland or have a major presence there, as many of you already know, is because of the enormous tax advantages and other incentives offered by the Irish government to foreign firms, coupled with the fact that Ireland now has one of the best qualified labour forces in the world. How times have changed!

I can understand why inexperienced investors panic and lose money. It is mainly due to a lack of understanding of the risks involved and particularly when it comes to biotech/pharma. If you don't understand the high risk area you are investing in, also the long time frame, nor understand why companies have bases or offshoots outside of their national boundaries, you really should reconsider your investment strategy.

Below is a link to various pharmas who have a presence in Ireland. Perhaps they know something we don't!