Most of small companies in Biotech sector did not make a cent revenue until their drug get approval from FDA, They need the CV to fund them. But after clinical phase 3 is done, they are not cheap anymore it will be around 10's to 20's and jump to 50's if the drug is good drug. See PUMA
PUMA has only 1 drug, and that's all it wants to concentrate on. If it failed, the recover will be much less probable and they have to start all over again. As for AVEO, we have several compounds in the works. Although Tivo failed with Astellas drug compound, it is far from starting from the beginning. A partner will find a way to work with this and get it done quickly. I agree with you re the PPS rise for pharma. If you wait until phase III, you're too late. Risk/reward.