Biotech Values

[quantumdot]

I am intrigued by the tendency to label Roche as a merchant bank, particularly when the term is clearly intended to be pejorative. Honestly, how does J&J really differ in this regard now?

Roche indeed made some shrewd moves re their investments but I think one has to get over their history and see who they are now. DNA is Roche and Roche is DNA. No doubt DNA's oncology drugs are driving their pharma revenues but they have a broader and pretty impressive pipeline beyond oncology all the same.

http://www.roche.com/research_and_development/pipeline/roche_pharma_pipeline.htm

They also have the forgotten sister in the Diagnostics group. They are a world leader in IVD and molecular diagnostics and you have to remember that their portfolio on that side is even more impressive even though it plays second-fiddle to the pharma group in absolute contribution.

They are one of the few Healthcare behemoths that truly believe in personalized medicine and have been willing to put their money where their mouth is. I think those who right them off as swiss bankers with no scientific credibility do so at the risk of missing an attractive investment opportunity.