Isotechnika Pharma Inc IPHAF

RE: why would Roche opt in?

[WASKERWISK]

"Opting into voclosporin would be a drain on their balance sheet."
 
Generally speaking companies have to spend money on R&D before they realize any profits from it so in one sense of the word it is always a drain although knowledgeable people prefer the word "invest".  Believe it or not many companies who do not have such a "drain"  will actually go out of business!   It would be nice if you  could make your profts before you've invested any money but even the biggest and best companies find that is quite challenging.  


"Why risk capital  on an unproven drug when you can buy a money making company with  approved drugs making over $12 billion/year in sales"

Well, you know its not a choice of one or the other.  Most companies like to make money in as many different ways as they can.  To use an example that is probably dear to your heart, most video game companies make more than one game - the more different games they can sell at a profit the more money they make over all.  Most movie production companies make more than one kind of movie.

But these are good questions though for someone your age.  Study hard and who knows, one day maybe you will be an investor yourself!