There are lots of ways to show how cheap widely despised biotechnology stocks are, but here’s my favorite.
You can now buy some of the best biotech companies in the world at prices that investors normally pay for risky initial public offerings (IPOs) that routinely blow up. This sounds crazy, but think through the logic with me.
Biotech IPOs normally come out at $10-$20 per share. For this, investors get one or two products in late-stage Phase III development, a possible smattering of therapies in earlier-stage trials (Phases I and II), and the promise of so much more to come based on some proprietary technology.
