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

To: Arthur Radley who wrote (21711)	10/25/2006 7:09:29 PM
From: Arthur Radley	Respond to of 52153

Open question to the science gurus on this board. Can anyone explain to me as to what I see as a price disconnect between Intermune(ITMN) and Coley (COLY). (ITMX) carries a Market Cap of $775M (COLY) carries a Market Cap of $316M COLY has a deal with PFE for their cancer compound that is in multi-Phase III trials with PFE footing the full development cost. Then COLY has a HCV drug in Phase II testing that has shown very positive data todate. COLY has indicated they want to control this compound for as long as they can. My thinking is that they think the PFE deal with provide milestone and royalty payments to foot their R&D cost and the HCV drug will be the money maker for them. I can't understand the MC variance between the two, when IMTX just signed a deal with Roche for their HCV drug that is in pre-clinicals. But Roche paid them $60M upfront, agreed to milestones of $470M and still will split revenue 50-50 even after Roche is funding 65% of the development. I own COLY stock but, IMO, based on the Roche/IMTX deal, COLY is trading at a huge discount to reality. Any input on this issue will be welcomed.