Biotech Values

[DewDiligence]

I don’t have a strong opinion on ELN beyond the obvious point that it’s a high-risk, high-reward play. That the stock is high reward is clear: Bapineuzumab could become the largest-selling drug of all time if it beats the odds and gets approved with a decent label. (I put the probability of approval in some form in the 15-25% range.)

That the stock is high risk should also be clear. Even after the recent swoon, the enterprise value (market cap plus net debt) is about $8B. This leaves a long way to fall if things don’t work out. Regards, Dew

p.s. I thought you decided to put all of your assets into bank CD’s a while ago after getting hammered with COR. What’s up with that?