Valuations for some major biotechs are coming down to
big pharma levels. In fact, based on 2011 earnings projections, the P/Es for
five of nine profitable biotechs now average multiple of 9.2, close to the 9.1
average for big pharma. Factoring in growth potential, however, still shows
biotech accelerating earnings at a higher rate than big pharma.
Price-to-Earnings Growth ratios thus suggest