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Replies to #69784 on Biotech Values
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DewDiligence

12/10/08 12:37 AM

#69786 RE: mcbio #69784

>What is keeping you from going long on VRTX?<

Only one thing: the relatively high valuation. The enterprise value (market cap less net cash) is about $3.5B fully-diluted.

On a probability-weighted basis, Telaprevir is probably the most valuable pre-approval drug today from any company. If VRTX’s enterprise value were, say, $2.5B instead of $3.5B, the decision to buy would be easy.