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Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?

To: Torben Noerup Nielsen who wrote (594)	1/28/2000 1:47:00 PM
From: Biomaven	Read Replies (1) \| Respond to of 52153

Torben, To the extent you are valuing an annuity stream, if interest rates go up by 10% (roughtly corresponding to a .5% increase), the value of the annuity goes down by about the same amount. Overall, PE ratios should contract by a comparable proportion as rates rise. When you are valuing an early-stage product like GLIA's Adcon, then much depends on the growth rate of the product, and so interest rates become proportionally less significant. A late stage product with flat revenues is more like an annuity. GLIA's drug development programs should be least affected. Peter