Replies to post #207563 on Biotech Values

[DewDiligence]

Biotech M&A valuations are going up dramatically (but the trendline is clearly unsustainable):

https://endpts.com/ma-inflation-just-pushed-the-average-biopharma-valuation-to-a-scary-new-peak

Looking at each deal as a multiple of revenue for the acquired company, the London-based consultancy [Novasecta] says that the median value of a buyout last year [i.e. 2016] was 39 times revenue. Compare that to a median 19 times revenue in 2015 and 8 times revenue in 2014, and you get a pointed picture of the fresh peak that’s been created in valuations.