RE: M&A30 Dec 2023 13:58
Just for fun, I'm bored.
'A rough guide in the biotech industry is that the price paid for promising compounds should be in the order of five times potential sales.'
With the above in mind, if I decided to raid my piggy bank and buy Keytruda from Merck how much would it cost me? Forget that the patent runs out in 2028. In the second quarter of this year sales of Keytruda rose by 19% to $6.3bn. So, let's be conservative and say $5bn per quarter. For the year that's $20bn. Multiply by 5 years potential sales = $100bn.
I'm not trying to compare apples and oranges, but makes me wonder where the share price could be in 12-18months time.