Tom Abate is a good writer and knows his subject. I thought this book was written in a guarded, pragmatic way that suits the reader's purpose (presumably investment). The dustjacket shouts of a 'coming boom' but the author can be forgiven for what is basically puffery. Abate is clearly arguing for a period of drawn out growth fuelled by demographics and accelerating technical progress - not an imminent goldrush.
I gained a number of insights I consider valuable:
-An understanding of the mechanism of FDA approval and how companies manage themselves around it.
-The fluid business models of existing companies.
-The way in which institutional fund managers seem to advocate active trading over a 'buy and hold' approach to biotech portfolios (this surprised me).
Timely, relevant and convincingly argued. I'd probably buy another book by this author.
Who this book is for:
-Independent investors willing to spend a lot of time doing research
-People looking for a current industry overview
-Job seekers
The Good:
-Extremely well written
-Up to Date (as of spring 2003)
-Knowledgeable - several small tidbits of data pay for the book by themselves
The Bad:
-Will quickly go out of date. For example the Appendix contains a list of firm websites and market caps; Market Caps change - companies disappear.
-Not enough FDA information. This should have been a separate chapter covering the FDA approval process in detail as well as other countries' processes.
-Too much basic investment advice: firm valuation/free cash flow/ portfolio theory / investor risk profile. Other books do a better, more thorough job of this.
-No bibliography
I gave it 5 stars because if you are going to invest in biotech the book will more than pay for itself.