Biotech Values

[nymup]

UnderValued Bio's - PCOP

cool,

I've been watching PCOP since the split, but I haven't taken the plunge yet. IMO, it's definitely an undervalued bio. I tend to put PCOP in the same category as EXEL. I like EXEL better, but with a market cap of $900M you can't call it an undervalued bio. The competetive advantage of both companies is a great medicinal chemistry department. Those guys can really crank out the drugs. The down side, for me, is that they are chasing the same targets as lots of other companies. Geez, how many companies are working on jak3?! So, it's a race for first in class, or best in class. I have a hard time tracking all of the competitors and the latest status of all of their drugs, so I tend to stay away from this category of biotech.


LEXG, on the other hand, specializes in finding new drug targets. Any drugs that they, or their partners, develop will automatically be first in class and best in class. They will also have patent protection, so there won't be any competitors for a while. It's a risky business, but they have identified so many targets that the diversification reduces the overall risk... I think.


If we could get PCOP or EXEL to merge with LEXG, now that would be a killer company. I might bet the farm on that one!