Biotech Values

[zipjet]

If they can borrow at ultra low rate so many companies get these days, why not?

Don't know.

Leveraged balance sheets work well - until they don't.

I don't follow either company.

But VRX has* a return on equity of 1.5% and on assets of 3.5%. That says they are paying more for debt than the assets are earning. Perhaps, it is transitional or some aberration in numbers.

ij

* Numbers from Yahoo Finance.