Biotech Valuation Message Board

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Biotech / Medical : Biotech Valuation

CRSP 53.85

-4.5%

Jan 9 3:59 PM EST

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To: Crossy who wrote (5919)	3/17/2002 2:27:31 PM
From: Spekulatius	Read Replies (3) of 52153

Japanese pharma Crossy, I think the idea to invest in Japanese pharma is a good one. I became interested after the Roche Chugai deal. Compared to several metrics (P/S and P/B), the Japanese pharma appear undervalued. Chugai for example trades at about 2x sales and 2x book values. PE is about 25. I have looked at Sankyo, but they have showed sinking revenues and profits for the last 2 years. The problem with Japanese pharma is government mandated price reductions which put a pressure on profits.For investment, i think its best at looking at the quality of the pipeline/reseach rather than PE ratio. If a company has a blockbuster and can strike a good deal with an foreign pharma, they may prosper even when domestic market is ailing.

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