Biotech Values

[DewDiligence]

>Is 2009 going to be the year for bios?<

Could well be. The tailwind is in place:

1. Big Pharma are sitting with huge cash hoards on their balance sheets earning a paltry after-tax interest.

2. They aren’t investing this cash in their own R&D engines because the results have been appalling. To the contrary, they are killing projects left and right.

3. Good drugs are still being developed, but they are mostly in the biotech arena.

4. Unlike the stock market, which can be grossly inefficient, the market where drugs and drug companies are bought and sold is quite efficient.

5. Political exigencies will end up being neutral on balance for the biotech business, IMO.

6. Boomers aren’t getting any younger.

Regards, Dew