Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: IRWIN JAMES FRANKEL who wrote (6096)	4/4/2002 11:19:59 PM
From: sammaster	Respond to of 52153

i think that bigger players are starting to buy the smaller ones with proven products... amgn buying imnx mlnm buying cor i think it would be smart for "real" pharmas rather than the biotechs to buy a pipeline...especially the ones that are being hammered as you mentioned for having no pipeline and "no" big future... a big pharma could easily afford, for example, scios at current prices and would get a great growing/proven drug and also a pipeline and technology... if the analysts regain "faith" in bmy after aquiring a pipeline/new drug then the stock price would increase and with small moves in these big pharmas stock prices result in billions of market cap...well worth it to buy scios for 3 billion in stock..a 100% premium...because with nearly 2 billion shares outstanding just a 1.5 dollar increase in share price is 3 billion gain...

To: IRWIN JAMES FRANKEL who wrote (6096)	4/5/2002 1:03:56 AM
From: John Metcalf	Read Replies (2) \| Respond to of 52153

"I'm sure some of you think I am missing it. So what is wrong with what I am saying?" Rick accused the big pharmas of lacking foresight and insight. Now, you say they don't even have hindsight-:) Perhaps some of them will take the acquisition plunge now, because erosion of revenues and earnings is unavoidable. They may as well have some prospects. Lilly, for example, is still selling for 7.35 times revs, and nearly 30 times earnings with Prozac becoming prosaic. SEPR is selling for 8.7 times rising earnings, so wouldn't be that dilutive (though it wouldn't go at the current quote). Merck has already taken a significant hit, and is cheap at 2.67 times sales and about 18 times earnings. Their stock is still worth $126 B, but it probably doesn't look like such great currency to them (any more). Even with today's haircut, BMY is still more richly valued than MRK (3.76 P/S and nearly 30 P/E). Most of the majors should buy something while they still can.