Replies to post #22184 on Biotech Values

[DewDiligence]

>I'd agree that Genentech has a great potential new product but where do you think the stock may go from here (it's at $90 and has more than doubled already in the last year)?<

DNA is much too expensive for me; I’d be more inclined to be short than long at the current valuation.

Two items that speak in favor of being short (other than the colossal valuation): 1) The company can’t be acquired (it’s already a majority-owned subsidiary of Roche); and 2) The run of extraordinary news flow—the Avastin and Tarceva launches, the Herceptin results in the adjuvant setting, and now Lucentis—can’t continue at such a pace indefinitely.