While there isn't any question that CEGE has broad patent coverage, that is only part of the whole picture. Implicit within such a broad patent portfolio is the underlying, long-standing body of research and development. So an aspect to consider besides patents is how long of a track record a company has; in fact, if and when litigation arises, a track record (with dates) is often used in cases where patents are in question.
Let me explain what I consider to be key in valuing a biotech stock for possible purchase:
1) Overall, relative market capitalization given prospects. Thus, if there are a few gene therapy companies trading for peanuts, and at the same time investors will pay huge sums for hundreds of Internet stocks, I see opportunity.
2) Partnerships.
3) Milestones, and milestone payments.
4) Breadth and applicability of technology; potential for revolutionary product introductions.
5) Track record (how long a company has been doing work in an area).
6) Balance sheet.
7) Buyout potential, given all of the above.
By the above criteria, certain companies come out on top. |
