Biotech Values

[caravon]

the companies have a worthy pipeline that they can develop and convincingly inform the analyst community - it will best serve to raise the PE.

I am not so convinces that "the analyst community" has much to do the PE value. "The analyst community" primary job is to smokescreen their masters market manipulation activities.

As for the GILD and ENTA valuation, these are two very different animals:
- GILD is a $122.5B Market Cap company with a large and diversified pipeline and 1.53B-share float. So, it will be valued as another large and established S&P 500 company. It will continue being independent company developing its pipeline via acquisitions.

- ENTA is a small company with a very limited potential pipeline. Its $627M market cap with a float of just 9.3M shares keeps it below most large insurance and pension funds radars. If successful, ENTA will be a company with a very large cash flow being very attractive for M&A. After all, where will ENTA put its cash? Buy back its own shares like GILD or buy new pipeline candidates for development & registration like CLVS? I don't think so.
ABBV will be more than happy to buy them out. It will not be the first time ABT will acquire a company of its own past employees.