A New Approach to Valuing Biotech Stocks
- Topics:
- Pharmeceuticals
- Source:
- University of Pennsylvania
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Overview: Stocks of biotechnology companies are soaring. However, while these companies have promising technologies, they are years away from profits. The boomlet shows, however, how hard it is to value biotech stocks. Analysts often use proxy drivers such as the number of patents or the dollar value of partnerships to value such companies, but these drivers fail to show if the companies will be able to turn their research into marketable products. This article offers insights into a new approach to valuing biotech companies.
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Format: HTML | Date: Feb 2001 | Pages: 6
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