Biotech Values

[DewDiligence]

Re: RVNC’s valuation (updated)

…do you still think it’s significantly undervalued at current level?

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

Moreover, the addressable market is truly global. As emerging middle classes in formerly poor countries gain more disposable income, one of the things they want to spend it on is looking good.

As I’m typing this (share price=$32.40), RVNC’s enterprise value on a fully-diluted basis is about $1.06B (see #msg-136930804 and #msg-136931339). I previously estimated that AGN’s Botox franchise (including aesthetic and therapeutic indications) had a net present value of $24B (#msg-127654469), so there is plainly a lot of headroom here.