Premise and rationale Share prices of drug and biotech stocks arguably can be broken down into two major components: the capital markets’ estimates of the value of assets that are…
NVS’ R&D spending as a percent of sales is on par with its peer group (Exhibit 1), as are its economic returns to R&D spending (yr10 operating income / yr1…
On October 20, the Wall Street Journal published an interview with LLY’s CEO, addressing the question of whether LLY’s relatively high R&D spending versus peers (Exhibit 1) is warranted. With…
Premise and rationale behind the ‘Hidden Pipeline’ valuation method Share prices of drug and biotech stocks arguably can be broken down into two major components: the capital markets’ estimates of…
Background Product pipelines account for a large percentage of drug and biotech companies’ total values, however relatively little information about pipeline products is available through traditional sources. As a result,…
Background and Introduction Pharmaceuticals demand growth is the product of population growth, growth in units (e.g. prescriptions) per person, and growth in price per unit. Price per unit can be…
Summary and Investment Conclusion Capital markets can see the characteristics of, and thus place reasonable values on, drug products that are on-market, in registration, or in very late (phase III)…