Biotech Values

[DewDiligence]

>What is keeping you from going long on VRTX?<

Only one thing: the relatively high valuation. The enterprise value (market cap less net cash) is about $3.5B fully-diluted.

On a probability-weighted basis, Telaprevir is probably the most valuable pre-approval drug today from any company. If VRTX’s enterprise value were, say, $2.5B instead of $3.5B, the decision to buy would be easy.