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Biotech / Medical : Gilead Science (GILD) Followers
GILD 121.57-1.0%3:59 PM EST

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To: Miles Rhyne Hoffman, CFA who wrote (224)3/15/1997 8:06:00 PM
From: wsnob   of 961
 
Miles,

Your listing is insightful, but is it fair to compare biotech "rookies" to
pharmaceutical "veterans"? Biotechnology is an enigma of sorts that is
difficult to analyze on a P/E ratio or market capitalization basis. The
key to biotech stocks is their future not their present. Might it be possible
to show current market caps for some of the bigger name biotech "rookies" (doing
all of the ones that you listed would be tedious!) versus the market capitalizations for
some of the pharmaceutical "veterans" at the time that they were "rookies"? For instance, GILD is
a 10 year old company with a market capitalization of approximately $900 million. What were
the market capitalizations of Merck and Pfizer after ten years of existence?

I have been a biotech investor for a long time and for equally long have been struggling to develop
a more effective way of analyzing biotech stocks. Perhaps the idea that I have proposed
will shed some insight.

wsnob
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