Biotech Values

[microcapfun]

>> 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. <<

The two are not independent. Big Pharma had two basic choices. Keep revenue growth happening through inlicensing and acquisitions or live with smaller revenues through downsizing. Most pundits thought they would do the former and therefore it was a great time to buy small biotechs with good pipelines. But now it is starting to look like they are choosing the latter - which could be more of a 'hunch down and let the storm pass' strategy.

Sorry to be repetitious ...

>>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<<

If you say so. Companies downsizing always try to get ahead of the curve and open up some margin. Doesn't mean they'll succeed.

micro