Ebb & Flow

Like any good shopper, Genentech (DNA) is keeping an eye on falling prices as part of its surveillance for potential M&A. The company has said for some time that M&A is part of its strategy, but noted as recently as January that the sticker prices were too high. DNA's changing its stance a bit, thanks to the erosion of value in the biotech space.

"Biotech values have dropped significantly over the past couple of years, and some indexes are down over 50% this year," noted CEO Arthur Levinson in DNA's second quarter earnings conference call last week. "Because of this we're asked frequently about our acquisition strategy. Our acquisition strategy has not changed, although it's fair and appropriate to note that some companies that might not have appeared attractive to us previously are becoming more so as the result of the decline in valuation."...