Ebb & Flow

Biotech had a good first week of the quarter, reflected by a 3.4% jump in the BioCentury 100 Index on the back of biotech-to-biotech M&A news and robust after-market support for companies issuing new paper. As usual, there were differing views on what sparked the move, although valuations were a common theme.

For example, MPM's Kurt von Emster thinks the run was sparked by Gilead's announcement that it would acquire Myogen (MYOG) for $2.5 billion in cash, about a 50% premium to MYOG's valuation the trading day before the deal was announced. ...