Biotech Values

[mcbio]

re: ECYT

McBio,

ECYT had $128 million in cash at the end of 2011. With this deal, they should have cash on hand in the neighborhood of $220 million. With a market cap of around $280 million, the EV is only $60 million. For a company that is going to file for European approval this quarter and has (written) permission from the FDA to file for approval based on PFS in ovarian cancer (Plus, MRK is pushing into many other cancer indications.), the stock still strikes me as quite undervalued.

And, I think (and I realize that what I think is rather worthless) the platform of small-molecule conjugated antibodies is an interesting technology.

Any comments appreciated.

Yep, I'm on board with all your thoughts here. I haven't sold a single share and don't intend to and will actually consider adding again if I get the chance. (I had as one of my top priorities to double my existing ECYT position awhile ago; bummed I didn't get the chance to do that before this move but thankful I at least had a position.)