Replies to post #15374 on Biotech Values

[AlohaDan]

Of course, it’s in Miller’s interests to pump the prospects of the small-cap biotechs that comprise the bulk of his selection universe—just as it’s in Neuroinvest's (Dr. Harry Tracy’s) interests to pump the prospects of biotechs in the CNS arena. JMHO, FWIW

Dew sometimes you just go overboard.

It's not in their "best interests" which IMHO is a negative connotation.

It is the fields they cover. That is their interest. It's not "pumping".

BTW you appear as others have pointed out to overlook both Miller and Dr. Tracy's criticisms of companies in their "Universe".

I don't have a problem with your disagreements when substantiated by an argument. EPS is a good one in this example. But can you drop the overly wild stuff.

Mahalo

Dan

[mejs]

imho I can see MRK merging with BMY and SGP with Fred Hassan of SGP becoming the new CEO.Dolan is being pushed out by the Feds because od the scandals and escaped prosecution by agreeing to merge with another Pharma,MRK's Clark was an internal promotion(figurehead)while Hassan put together the pieces.civic08801

[io_io]

<<<M&A: I disagree with BTM’s Miller on this:>>>

Had missed this post.

In part I agree that the mid-cap biotechs may get snapped up, and not many small-cap biotechs will be purchased in the near future, simply because the ones with truly promising drugs would command premiums far above the norm, and furthermore due-diligence (in the literal sense !) would be difficult in verifying the true prospects (biolgical/chemical but also regulatory and market) of a drug, and from there agree a price. Talks might start, but to close a deal would be extremely difficult.

I appreciate yout opinion, but disagree about your remarks that "Of course, it’s in Miller’s interests to pump the prospects of the small-cap biotechs that comprise the bulk of his selection universe" - first of all as he normally commands a very, very small audience, and he is not at all in the "pump" business; secondly the idea that a couple of sentences on the prospects of an entire drug sector could be "in his interests" does not add up as his (and BTM's) investments are extremely narrowly focussed.

One thing I would expect (and perhaps this is what Miller was implying ? - I don't recall the article) is that the smaller-caps will get the mutli-$m partnerships that are so necessary - in this case it is far easier to set price benchmarks for escalating success of a drug candidate. Time will tell.