Replies to post #50665 on Biotech Values

[microcapfun]

Headwinds and Tailwinds for Big Pharma’s Profits


Thanks for the thoughtful analysis, Dew. I'm not sure about #3, though.

>> 3. The layoffs upon layoffs that ‘Biopharm investor’ has documented will lift all boats to some degree by allowing drug companies to cut selling costs without losing “share of voice.” Since Big Pharma currently spends more on selling than on R&D, this is a big deal. Positive. <<

As I suggested before, #3 suggests Big Pharma is resizing itself commensurate with a smaller revenue stream. That means they may be throwing less money around the sector (pharma and biotech) via inlicensing and acquisitions, which is bad for everybody else.

micro