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

To: jeffbas who wrote (78)	3/17/1999 9:30:00 PM
From: Biomaven	Read Replies (1) \| Respond to of 52153

Jeffrey, has anyone every tried to create a valuation model of stocks based on market cap to existing drug sales I assume that's what the drug analysts spend their time doing. <G> It's complicated by issues such as the need to take into account the remaining lifetime of the drugs and royalty payments. I absolutely agree that it would be great to be able to separate out the value in the existing drugs from the value in the pipeline. There's an old claim that the market value of MRK exceeds that of the entire biotech industry. (Maybe someone would like to check the list to see if it's true?) What's really more relevant to biotech valuation of course is how the value of the MRK pipeline compares with that of the biotech pipeline. It would be interesting but time-consuming to aggregate the biotech stocks and come up with overall numbers for sales, earnings (or lack therof), R&D expenditures and market cap. Peter