Biotech Values

[DewDiligence]

The Yahoo DNDN board getting worse every day. To wit:

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The potential is mind bubbling
by: michael240163
Long-Term Sentiment: Strong Buy 07/05/05 09:21 am
Msg: 116058 of 116069
This post has 20 recommendations

…More than 232,000 men develop Prostate Cancer each year. A treatment with Provenge is expected to cost around $40,000. If all were to be treated with Provenge the market would be around $9 billion. A price/sales ratio of 5-10 is common for Biotech companies so this product alone could justify a market cap of $45-90 billion
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More from the same post:

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stumbled over some figures for ImClone's recent results from a late-stage study, which showed its Erbitux drug is effective in preventing the spread of head and neck cancer (this is their main product): "After three years, 57% of the Erbitux-treated patients were still alive. 44% of patients treated with radiation alone were alive after three years". Compare that with DNDN's results from Provenge against prostate cancer: Phase 3 study showed a 300% increase in the survival rate after 36 months.
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I assume people on iHub see how silly this comparison is. The control arm in the Erbitux trial in H&N cancer was radiation treatment; the control arm in the Provenge trial was placebo.