Life sciences is an attractive niche within investment banking, offering great pay and strong exit opps into healthcare investing roles. However, breaking in is challenging given the technical skills required. This piece will elaborate on the key skills and experiences needed, day-to-day responsibilities, top firms to target, compensation benchmarks, and tips for acing interviews.
Advanced scientific training is table stakes to demonstrate credibility with clients
Given the specialized nature of the life sciences sector, investment banks expect associates to have advanced scientific training like MD, PhD, or at least a major in the life sciences. This establishes credibility when interfacing with biotech clients and analyzing the commercial viability of novel compounds or devices.
Valuation modeling expertise tailored to biotech is mandatory
In addition to standard DCF and comps modeling across sectors, associates must master specialized models for valuing biotech companies based on pipeline assets, clinical trial data, and peak sales forecasts across indications. Fluency in these models is often tested in interviews and deal work.
The payoff is worth the grind given lucrative exit opps
While the hours can be long and pressure intense on live deals, the payoff is attractive exit opps into life sciences investing roles in growth equity, venture capital, and pharma corporate VC groups. The specialized skills developed make candidates very compelling for these coveted roles.
Target bulge brackets along with elite biotech boutiques
For campus hires or MBAs, bulge brackets like Goldman Sachs along with elite biotech-focused boutiques like Leerink offer the best training and exit optionality. Boutiques in particular excel in life sciences domain expertise and high deal flow concentration.
In summary, breaking into life sciences investment banking requires deep scientific creds along with financial modeling skills tailored to valuing biotech firms based on drug pipelines and data. The rewards are a lucrative career with pathways into coveted healthcare investing roles.