Biotech Values

[DewDiligence]

WSJ re Big Pharma’s M&A proclivities:

http://online.wsj.com/article/SB10001424052702303299604577327740892499390.html

Acquiring diagnostic, generic-drug companies and medical-device makers looks attractive. Pharma groups with more than half of their sales from such "non-pharmaceutical" areas trade at valuation premiums of about 15% to less diversified peers.

NVS and ABT (more so than JNJ) are the templates for such diversified pharma/healthcare companies.

Roche’s pursuit of ILMN is clearly consistent with the passage quoted above.