Replies to post #106748 on Biotech Values

[DewDiligence]

Why breed speculation in the market and attention as to what GILD's HCV program is lacking?

The investment community is well aware of GILD’s pipeline deficiencies. Now that Genentech is no longer independent, GILD is probably the most closely scrutinized biotech company in the entire industry.

[DewDiligence]

The price of a deal may have gone up too. I guess that's not an issue for a company that prints money.

In all likelihood, we’re talking about a licensing deal, not a buyout, so I don’t see why the price of a deal would have gone up just because Bischofberger said GILD was in discussions with several companies. To the contrary, Bischofberger’s CC comment might cause the prospective licensors to bid against themselves, thereby lowering GILD’s deal price. All told, however, I think the subject of this thread is a non-issue.