Biotech Values

[DewDiligence]

Now for a repost from the Yahoo GTCB board (for a change):

>>
Re: With approval very likely, I see
by: DewDiligence
06/21/05 02:19 pm
Msg: 20612 of 20621

>>…I see no reason we don't head back up to the $4 range. GTCB traded in that range for a long time without ever being this close to having a product on the market.<<

With about 50M shares outstanding on a fully-diluted basis, a $4 price represents a market cap of only $200M. (At $4, the enterprise value, which is the market cap net of cash and debt, would be even less than $200M.)

$200M would still be an unduly conservative post-approval valuation in my opinion. The IP portfolio and the European ATryn sales (which ought to reach about $75M in a couple of years) by themselves justify a valuation of at least $300M, IMHO. And this does not even include rhAAT, albumin, the rest of the pipeline, the external partnership programs such as Merrimack, or the U.S. ATryn program.

In other words, I am staying long for quite a while.

[Posted as a reply to: Msg 20591 by RANDYCHUB]
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