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Biotech / Medical : Biotech Valuation
CRSP 55.11-2.6%Nov 7 9:30 AM EST

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To: Biomaven who wrote (593)1/28/2000 1:02:00 PM
From: Torben Noerup Nielsen  Read Replies (1) of 52153
 
Peter,

I'm mostly focused on the biotechs that can be expected to turn profitable by the end of this year. And for those, I simply do not see the relevance of interest rates.

Take Gliatech. Barring anything really major, they'll turn profitable this year. Given their relatively low market penetration and the massive growth rate expected, it seems silly to me to consider interest rates at all.

In general, I agree with your model. And the conclusion I'm coming to is that a 50 point increase by the Federal Reserve might actually be good for us as I'd expect it to actually *increase* the flow of money into biotech. All those funds have to have something to show by the end of the year....

Thanks, Torben
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