Biotech Values

[oc631]

PSI-938 may turn out to be a fine compound, but GILD made it clear that PSI-7977 far outweighed all other VRUS assets in arriving at the $11B buyout valuation. If I had to put a number on it, I would say that 95% of the buyout price is attributable to PSI-7977.

PSI-7977 has proven itself in mid-stage testing. Keep in mind GILD would never pay 11B for PSI-7977 without 938 to fall back on. PSI-938 as an asset should be valued at about 3B of the deals overall price.