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Replies to #9186 on Biotech Values
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DewDiligence

03/22/05 9:32 PM

#9188 RE: swampboots #9186

>> ALNY: Partial to this stock on weakness only because of Merck
involvement, but need to see one billion market cap (6X present market cap) probable from income streams recognizable within 5 years.<<


If ALNY remains independent, I doubt that the enterprise value will reach $1B even in five years. Realistically, ALNY does not have any drug candidates that could reach the market in that period.

Moreover, in five years there will probably be many more shares outstanding, so the chances are you would not get anywhere near a 6X return on your money even in the unlikely scenario where the enterprise value got to the $1B level.

A more likely way to win on ALNY is a buyout at perhaps twice the current valuation. JMHO, FWIW