Biotech Values

[DewDiligence]

Re: RVNC valuation

RVNC…was on my list to buy today, but my timing couldn’t be worse. …given results and your previous bullishness, do you still think [it’s] significantly undervalued at current level?

I think RVNC is still a solid buy for the long-term; they are now almost assured to launch a best-in-class product in a fast-growing market in the next two years or so.

As I’m typing, RVNC’s enterprise value on a fully-diluted basis is about $1.1B (#msg-135963594, #msg-135963545). I previously estimated that AGN’s Botox franchise had a net present value of $24B (#msg-127654469), so there is plainly a lot of headroom here.

However, if you are looking for merely a trade, you might do better to wait for RVNC to raise capital, which they are almost certain to do in the next few months.