Replies to post #167706 on Biotech Values

[mcbio]

If ENTA gets approval their EV will be <100M so it won't take much in sales to push up the valuation

I place more importance myself on market cap and confidence in drug than EV just because I think the market assigns much more value to future potential earnings than it does to cash position. I.e., if you have company A and company B with similar market caps and A has lower EV due to much better cash position but B has a much more promising drug, I'll take B every time.

i do share some reservations about commercial potential, and it may not be a multibagger or anything, but at this point approval just doesn't seem baked in at all which to me makes this one of the safer bets in biotech

Yeah I'm not suggesting ENTA isn't a good play here. I think approval is likely and there's likely upside on that; I just question amount of upside. I think it's more the level of sales that will determine if significant upside is to be had.