In the last two years, the focus on biotech has switched from "technology-rich" issues to companies with projects in advanced stages of clinical testing. This was justified after the long drought of '92-'94. However, the observation that the total capitalization of the biotech industry is smaller than that of Merck is now taking hold, and investors are beginning to realize that the patent portfolios of biotechs, in terms of value in 10 years, is growing at a rate that dwarfs that of the pharma industry.
So, the focus should now switch back to companies where the payoff has been, historically, the greatest...... "technology-rich" companies. ARIA is, IMO, one of the most under-valued of biotechs, if not *the* most under-valued. Without an additional partner, relative to third-tier peers, I value ARIA at $8/share. A new agreement will provide further fuel for what I hope will become a fire.
Rick |
