Biotech Richly Priced With One ExceptionNovember 27, 2013
At 10.3x book value and 50.3x cash flow on average, the biotech industry is among the most expensive in the MSCI World index.
There have been some big winners in the biotech industry the last 4 years. Every stock in the industry has outperformed the MSCI World index over this period.
Actelion has lagged somewhat–only outperforming the index by 2% over the last four years–and appears to offer the best relative value in the group.