Biotech Values

[DewDiligence]

I still feel that at this point all these 'tailwind' companies are grabbing emerging countries while losing the developed countries.

This is not an either or situation. Big Pharma will excel in so-called established markets if they develop new patented drugs that meet unmet medical needs. However, whether or not they are successful in that endeavor, they will enjoy robust growth from selling branded generics in emerging markets.

Most Big Pharma are selling at prices that make sense only if one thinks they will never again produce big-selling patented drugs. By buying these stocks at today’s prices, you are essentially paying fair value for the companies’ prospects in branded generics and getting a free call option on their potential success with new patented drugs.