Replies to post #157620 on Biotech Values

[poorgradstudent]

bloated valuation at ~$500M market cap?

If they can translate this technology efficiently to the clinic then no, not bloated. Very versatile tool, and if established, rather easy to generate follow on candidates for new indications.

But it has a similar MC to ARRY, no? Is ARRY bloated? I think PPHM is severely bloated despite having a much smaller MC. I don't think INCY is bloated despite having a MC 4-5x ARRY and SGMO.

Just comes down to different preferences I guess. When there are no clear red flags to rule out a drug's success, then comparisons of market caps are hard for me since they're just snapshots in time and often fluid.

I'm more and more convinced that much of the stock market, and biotech especially, is just boys being boys and picking a favourite team based on various stats (MC, # drugs in development). Sometimes your team wins, but more often it goes to extra time for many periods and people just end up having watched a very long game where the outcome is no longer as exciting as it once was :-)