Biotech Values

[biomaven0]

SPPI's market cap when Fusilev was approved

But then Fusilev was not a typical high-risk new oncology drug. Already approved and widely used in Europe and a known and well-understood variant of an approved and widely used drug here in the US.

In some sense this AF rule is just the efficient market hypothesis in another guise. Any really promising oncology drug in Phase III is going to be associated with a decent market cap. If the market cap is low, then that implies the market doesn't believe the trial will succeed or (for a drug like Fusilev) that there isn't much market.

Peter