Bjarke Krysel Christensen, 43
Bjarke Krysel Christensen is a scientist with a specialization in microbiology (the study of microscopic organisms). He has invested in biotechnology stocks for more than two decades.
How he invests
Mr. Christensen's investment approach is to use his scientific knowledge and skills to find small biotech companies that have promising prospects for developing blockbuster drugs. In addition to gathering information on biotech companies, he delves into the "pertinent parts of the scientific literature" to get a good understanding of new drugs.
Because such research can take a lot of time, he typically examines "a very limited number" of companies. At the moment, he only owns shares in Resverlogix (trades on the Toronto Stock Exchange).
There is "a compelling case for the science behind Resverlogix and their lead compound, RVX-208," Mr. Christensen believes. Post-hoc analysis of data from past clinical trials at Resverlogix indicates that the compound can inhibit bromo and extra terminal (BET) proteins. This is encouraging to him because there is a "growing body of scientific evidence" that BET-protein inhibitors protect against heart disease.
In the spring, insiders purchased $2-million worth of Resverlogix shares. Also, the company announced in July that it had obtained a $30-million loan to conduct new trials. Yet, it remains "grossly overlooked."
With biotech investments, investors need to be prepared for "big ups and downs." Some of Mr. Christensen's positions have been very successful while others have "disappeared overnight."
"My best move was to accumulate Dendreon Corp. down to the $4 level and sell around the $40 level after they announced the data from their successful Phase III trials of Provenge [treats prostate cancer]."
"It was not selling all my shares in Vivus Inc. when they got their obesity-fighting drug approved [the shares were later sold at lower prices]."
"First of all, never invest more than you can afford to lose. Second, careful research … is time very well spent."
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