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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (80854)	5/18/2000 2:36:00 PM
From: Spekulatius	Read Replies (1) \| Respond to of 132070

The value is of a biotech is of course in the pipeline. What is important is how much money is spent to create a potential future cash flow. For example the same drug has basically twice the value for a biotech if the royalty rate is twice as high. Indications are that LGND deals have been bad or mediocre at best but VRTX has made very smart deals,for example with Chugai and Schering. VRTX has always been well funded and they did never make a deal when they didn't get the money they deserve. LGND's pipeline may be broader and they have more drugs in development with their partners but in terms of future cash flow VRTX is much better. The Novartis deal is certainly an indication of superb capabilities and can propel VRTX in a new league. Incy stock is breaking currently and is starting to become attractive in the mid fifties.