Biotech Values

[microcapfun]

Layoffs.

There has been a lot of talk the past couple years about Big Pharma being forced to pay more for inlicensing and to inlicense earlier stage products - in order to fill the holes being left in their drug portfolios as a result of blockbusters going generic. Some have felt that *now* is the time to own small biotech companies because of the above.

Is conventional wisdom wrong again?

Is the response of Big Pharma to generics not to inlicense more but to resize their operations? And to move horizontally - also into generics, diagnostics, ... ???

Naz Biotechs being outperformed by the Naz Composite over the past year by ~15%:

http://finance.yahoo.com/charts#chart6:symbol=^nbi;range=1y;compare=^ixic;indicator=volume;charttype....

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