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Biotech / Medical : Biotech Valuation
CRSP 53.00-6.4%11:37 AM EST

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To: N/E PATSFAN who wrote (674)2/20/2000 8:16:00 PM
From: david james  Read Replies (2) of 52153
 
An open question for anyone.

Can anyone give an estimate of the value that should be put on the cash held by a biotech? Suppose that one had two biotechs with similar pipelines and potential, but one has $10 mill in cash and the other has $210 mill in cash. I assume that the extra $200 mill in cash is worth more than $200 mill to the market cap, but how much more?

My main reason for asking has to do with trying to value CEGE which is sitting with $230 mill in cash and $685 mill in ABGX stock.

Dave
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