Biotech Values

[DewDiligence]

> CYTR – At $24 million for just a 1% stake in sales, we could mathematically imply that the CytRx, as a whole, could be worth in excess of $2.4 billion, or more than $30 per share. With the stock trading at levels giving it about a $100 million market cap, I think there's a lot of upside here…<

This is totally bogus analysis for the reason mentioned in a prior post: the $24M payment was not a business transaction per se but rather some kind of quasi donation by a foundation that supports work in ALS.

If CYTR were really worth $2.4B for the ALS drug alone, would it have a valuation of $100M? Give me a break! The stock market is inefficient, but not that inefficient.