Replies to post #128134 on Biotech Values

[hptaxis]

DNDN: https://twitter.com/#!/adamfeuerstein/status/123410155604942848

IMO, DNDN is still highly overvalued, for whatever reason(s).

[DewDiligence]

…no one on this board is saying that there is no weakness in end user demand. Just that it is probably a mixture of effects that are difficult to disentangle.

You’re entitled to your opinion, of course, but DNDN’s problem is hardly difficult to disentangle, IMO. As I previously noted (#msg-65880178), biotech companies do not lay off manufacturing employees to deal with a temporary issue such as reimbursement; it’s never happened, as far as I know. In the prior thread, I asked you to cite examples and you came up empty (#msg-65884168). You then attempted to justify your position by talking about behavior in the semiconductor industry (#msg-65886329), which is an altogether different animal from the drug/biotech industry when it comes to boom and bust cycles.

Note that you made a similar kind of misjudgment in #msg-67805053, where the topic was settling patents and you invoked the wireless-telecom industry as justification for your stance. I would respectfully suggest that this represents a pattern in which you seek to extrapolate from other industries to biotech in cases where the other industries in question are fundamentally and consequentially different from biotech.

I’ll refrain from replying to your comments about strawmen and glass houses because it wouldn’t add anything to this discussion.