Biotech Values

[Rocky3]

"Of course, there is the argument that the market doesn't understand what the current Rx numbers mean for sales and earnings, and will adjust after Q1 earnings. I hope that is true, but seems a little too hopeful to me."

Not sure what you mean. Are you saying you don't think the market will understand what current Rx numbers mean for sales and earnings even after Q1 earnings have been reported. After Q1 ER, there should be a lot more clarity as to the relationship between Rx numbers and sales numbers.

No, the market will understand what the current Rx numbers mean for sales and earnings, but there is no guarantee that the price will change a lot. If the sell-off is driven by concern about durability of earnings (after 2016-17), great earnings in Q1 and Q2 (and even for the rest of '14 and '15) may or may not be reflected in stock price appreciation thereafter. Again, my bet is that the market will appreciate the huge earnings for '14 and '15 and assume that they will continue for awhile and price the stock accordingly, but that is why there are both bulls and bears.