Investment Management - , ,
V2M® Capital is the General Partner of V2M® Life Sciences Fund LP. The Fund makes investments in undervalued public companies developing innovative products that address large, critical unmet medical needs. The Principals coined the phrase, "Value-to-Momentum®" (V2M®), to describe the Fund's proprietary investment strategy. Typically, the companies are 5 to 15 years old and have historically made substantial investments in the development of their technology platforms and product pipelines. Since developing and commercializing medical breakthrough products is fraught with challenges and hurdles, the product development process and the product adoption velocity are irregular and are frequently characterized by periods of progress followed by setbacks. Not surprisingly, this creates share price volatility and more often than not a dramatic decrease in the value of the company. This in turn creates a "value" investment opportunity. The Fund takes advantage of these events to build positions in companies at depressed valuations if the Principals believe that the setback is indeed reversible. As the companies begin to turnaround and achieve new significant milestones, which serve as event or momentum catalysts, the value of the company typically begins to appreciate. This momentum driven appreciation can become dramatic for reasons unique to the medical products industry including the following: (a) medical breakthrough products tend to be high margin products, (b) such products often claim a monopoly position at least for a period of time, (c) products addressing critical unmet medical needs can often experience a rapid rate of adoption due to pent-up demand, and (d) many of these products are applicable globally.
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