Biotech Values

[DewDiligence]

Mr. Trump said at a White House meeting with airline executives that he would make an announcement that would be “phenomenal in terms of tax” within the next three weeks.

https://www.wsj.com/articles/asian-stocks-tread-water-as-markets-hit-equilibrium-1486613363

As has been discussed ad nauseam, a lower US corporate tax rate would greatly benefit small US biotech companies, who don’t have the wherewithal to cut their taxes by shuffling money between multinational subsidiaries. Even if these companies have no taxable income now, the prospect of future (after-tax) profits is what drives their valuations.