Biotech Values

[DewDiligence]

>As I suggested before, #3 suggests Big Pharma is resizing itself commensurate with a smaller revenue stream. That means they may be throwing less money around the sector (pharma and biotech) via in-licensing and acquisitions, which is bad for everybody else.<

A lower expected top line for Big Pharma is bearish, but lower Big Pharma SG&A expenses for a given level of sales is very bullish, IMO.

I think it’s fair to say that the aggregate Big Pharma layoffs reported by BI go well beyond the anticipated percentage falloff in aggregate Big Pharma sales, which should make the net effect of these transactions bullish for healthcare investors. Regards, Dew