Valuing a biotech, particularly one with no commercial products, is always going to be a controversial exercise. Having written on stocks for a public audience for over a decade (and for institutions before that), I'm still surprised at the number of people who will make comments like "that biotech has no earnings, it's worthless!"
It's an even more challenging exercise with a stock like Arrowhead Research (ARWR), though, as so much of the value of this company lies in its basic technology - technology that will really only show its worth over many years of clinical development work. It's dangerous to say that Arrowhead will be just like Alnylam Pharmaceuticals (ALNY) in a few...
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