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 & Pharma.T.A, -- Ignore unavailable to you. Want to Upgrade?

To: Galirayo who wrote (1327)	7/27/2005 11:24:13 PM
From: John Metcalf	Read Replies (1) \| Respond to of 3722

"What's on the forefront ?? It's .. how to say .. on the Verge of something." I know NOTHING, Ray, nothing I tell you! Get those electrodes away from my *****! I know nothing! Seriously, Neurogen is about in the middle of its annual range. The big deal (to me) is still Vanilloid receptors with Merck. It could be that this deal puts NRGN in some folks' sites as a takeover target, because the companies pooled their work. MRK may as well buy them, if the IP has substantial value. Also, Merck has dwindled in relative stature in the drug industry, but is still holding a lot of cash, which makes buying IP a logical survival step. And, it could be that NRGN, as a fairly complete drug-development machine is more highly valued now that biotech has rallied so strongly. So.... my guess is that the market is bidding up good biotech Intellectual Property, irrespective of specific hot prospects for NRGN. If there is one, it escaped my attention. (Again!) Dreamers have just seen DNA and AMGN go way beyond their wild hopes, and they're looking for new ones. In regard to valuation, there used to be a Biotech industry matric called the "Merck Index". It was the aggregated market cap of all biotech companies divided by the market cap of Merck. The value was below 1.00 until recent years. Now -- both Genentech and Amgen are worth more than Merck. A new "Merck Index" might be in the range of 0.2! And yet, ^BTK is still a third below its all-time high. The $6 Neurogen entry price you indicated was great, and a good trade no matter what is in the future.