Parsing biotech enterprise values

A snapshot of enterprise values for NASDAQ-listed biopharmas at year-end shows most companies trading above cash and lacking substantial debt, offering opportunities for good deals on acquisitions.

Just 8% of the 183 NASDAQ-listed biopharmas that ended last year with market capitalizations of $200 million to $2 billion had negative enterprise values, a measure of market cap plus debt minus cash. Those companies with negative EVs may be targets for reverse mergers or takeouts otherwise motivated in part by access to cash rather than a compelling pipeline...