Yes—this fund requires pharmaceutical companies to generate the IP in the first place, and also to sell the successful drugs. A new pharmaceutical company will face the same risk profile as existing pharmaceutical companies; I would be very surprised if one could suddenly start investing according to the opposite pattern the others use.
On the other hand, I don’t see any reason why an existing pharmaceutical conglomerate could not employ this strategy or a similar one. They already have a huge amount of IP laying around undeveloped (it is from them a fund like this would acquire it) and other huge companies like General Electric have deliberately explored financial engineering as a corporate strategy. It failed in that case, but in this one we are just talking about supplementing the core strategy rather than replacing it.
Yes—this fund requires pharmaceutical companies to generate the IP in the first place, and also to sell the successful drugs. A new pharmaceutical company will face the same risk profile as existing pharmaceutical companies; I would be very surprised if one could suddenly start investing according to the opposite pattern the others use.
On the other hand, I don’t see any reason why an existing pharmaceutical conglomerate could not employ this strategy or a similar one. They already have a huge amount of IP laying around undeveloped (it is from them a fund like this would acquire it) and other huge companies like General Electric have deliberately explored financial engineering as a corporate strategy. It failed in that case, but in this one we are just talking about supplementing the core strategy rather than replacing it.