Biotech Values

[zipjet]

Valuing EPS in a Grahm/Dodd sense requires that the future earnings stream be predictable. For that standard, the only highly probable - predictable stream, is the royalty as rkrw suggests.

But over time, certainly less than your two years, others who do not share the compunctions of GD, will see substantial earnings and apply a PE attributing a much higher value than GD or the bears think proper.

I do not think the TEVA approval is a given. It may happen. It may not. Interestingly, even if it does happen, you have to wonder if the accomplishment might depend on infringement of MNTA patents. That could dramatically change the expectations.



ij