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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: orkrious who wrote (15731)	5/12/2001 3:46:35 PM
From: Zeev Hed	Respond to of 30051

Jay, I think that my "ten bagger" comment was from the just under $30 area. You got to understand, however, that this is "potential", and on the way to bank accidents happen, like patents being void etc. CRA model involves not just selling information on the genome to pharmaceutical companies, but getting royalties on resulting drugs from the information. They are also getting more directly involved in "proteomics" which is the identification and eventual production or licensing of unique proteins whose manufacture by biological systems are coded by various genes. If you believe that a good chunk of the $135 B (today) pharmaceutical market will be based on information CRA provided, you can easily see them getting more than $ a billion in royalties every year in the next ten to twenty years (by then the pharmaceutical market will be well in excess of $200 B annually in the US and probably $600 B worldwide). Valuing such future $1 B/year at $20 B (or ten times todays valuation of $2.3 B or so, if memory serves) is not so outrageous in one of those "exuberance" stints the market is going to have over the next ten years. Zeev