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

To: Icebrg who wrote (8749)	6/23/2003 3:55:22 PM
From: Biomaven	Respond to of 52153

"You don't just take pharmaceutical companies and cut their research for 10 straight years and expect them to continue to deliver products," says John McCamant, editor of the Medical Technology Stock Letter. Not quite sure what universe McCamant is living in here - certainly not ours. Pharma have been increasing research spending steadily over the years - the problem has been that they haven't had much to show for the increased spending. Peter

To: Icebrg who wrote (8749)	7/3/2003 10:36:33 AM
From: Icebrg	Read Replies (1) \| Respond to of 52153

Relative valuations: NBIX vs. SEPR. I was just about to invite some comments with regard to the valuations of Neurocrine and Sepracor based on their very similar market caps., when I realised that I hadn't taken all factors into account. But I will include cash and long-term debt in the comparison and still ask for an opinion. NBIX SEPR Market cap. 1.700 1.630 ./. Cash, etc. 308 481 + L-T Debt 5 983 ----- ----- Total 1.397 2.132 The tough question to answer is now: Is the valuation gap between NBIX and SEPR reasonable or not. My own answer is that it is not, considering that SEPR already has products on the market, royalty incomes, has its lead compound in a more advanced stage and has a late-stage pipeline that appears to be better stuffed. It seems that Sepracor has still to accept to see their stock discounted due to the unsettled debt issues. Erik