Biotech Values

[zipjet]

>>ELN - the selling is probably overdone. It's looking cheap even if assume Tysabri growth will slow down significantly.

That may be right. But it is not clear to me.

The T franchise is now burdened with the risk that sales will be discontinued. Pulling the drug could happen any time. This cloud will hang over the stock for at least another year or two while this is sorted out should the drug remain on the market.

So what value should the stock holders place on a franchise that could evaporate any day?

My guess is that ELN could drop to 6 before this is resolved even assuming T is not pulled and significantly lower if pulled.

zip


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