Biotech Values

[corpstrat]

How about acquisition prices relative to intrinsic value? Did any of these guys get acquired at a steal relative to probable value of their pipelines? For those of us who think we've spotted an under-valued (risk-adjusted) stock or two, that's what matters.

I know it's hard work to even take a stab at that unless one's followed the company's pipeline. Take Kosan: $200MM for two molecules in mid-stage trials - one with so-so results to date for combo use with Herceptin in B Ca and Velcade in myeloma, and the other in NSCLC. Does not look an obviously unreasonable price. (Fairly low probability of success and not huge revenues upon success because of modest combo efficacy claims?) Any burned and better-informed Kosan holders feel like arguing the other side?

That many of the stocks on the list were way off their 52 wk highs probably means setbacks to the pipeline in the past year - looks that way for Kosan. Setbacks drop the intrinsic value - it's not just market fickleness, right?