Replies to post #3002 on GTC Biotherapeutics (fka GTCB)

[mblimon]

I agree with Swazie, that it is the much lower sector competition in European biotech, which makes that Pharming has been able to attract sufficient interest from Investment Funds. Pharming is one of the leading European biotechs in terms of market cap. To get there Pharming's management also had to take a few hurdles (principally the negative image of their near bankrupcy in 2001), so there again I agree with Swazi that Pharming's management has done an outstanding job to overcome the negative image from the past among the investment community.

While GTCB has suffered similar setbacks with rhATIII in 2000, unfortunately GTCB's management has not been able to convince the market of the turnaround in its pipeline.

Both companies have a very rich and promising pipeline, but opportunities are still so diverse and open ended, that I would have a hard time to value one higher than the other. Maybe one can say that Pharming has a slightly better chance to show substantial profits within 2 years.

I expect that once their first products come to market and they hit the break-even point, the market will start valuing their pipeline for what it is really worth. That is why I think that the validation of both companies will be much more equal in 3 years time and also much higher.