Biotech Values

[DewDiligence]

> BSX. Any thoughts on valuation? It's starting to look cheap.<

It’s cheap for a reason. BSX’s two main businesses—ICD’s and drug-eluting stents—have plateaued and no one knows when (or if) growth will re-accelerate. If these businesses do not improve, the company will be hard-pressed to service its massive debt load from the Guidant acquisition and still earn a profit.

Buy if you think the ICD and DES markets have hit a temporary and ultimately inconsequential bump. Otherwise, avoid BSX even at these levels. JMHO, FWIW