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Biotech / Medical : Biotech Valuation
CRSP 56.61-0.6%Nov 6 3:59 PM EST

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To: Mike McFarland who wrote (6)2/25/1999 8:38:00 AM
From: BRAVEHEART  Read Replies (1) of 52153
 
Hi Gang,

Mike careful what you wish for. Ever hear of the Butterfly Flapping it's wings story where halfway across the globe it causes a Hurricane.

Anyway more to the point. Valuation is a frustrating concept. Some days I muse over Analyst reports and I ask my self, "What are/were they thinking". For instance PGEN and it's acquisition which was valued at $30 million of IPO money. It will be interesting to see how little they get for the same ( improved upon? ) assets today.

For those looking to add to that Frustration you may want to get a copy of the recent Nature Biotechnology Issue along with it's supplement. It goes into considerable detail on the financing of biotech. Which to me is a large percentage of the construct in valuating any specific biotech. Especially the the early stage third tier companies.

For even more theoretical constructs on models which are often used in determining valuation one might pick up the following two part article ( Even a photocopy ) from IN VIVO. The title is Biotech Models, Part I : Near-Term Stratigies & Biotech Models, Part II : Early-Stage Companies. The two issues needed are Vol 14 #11 December 1996 & the January 1997 issue. Interesting reading in the least.

Best Wishes
Jeffrey

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