Dream of $100When2buy said...This is not about bashing VRX, CXR, etc. This is about the market deflating the concept that Growth By Acquisition Strategies can continue to produce massive double digit growth and PE multiples given the focus by the market and US Gov't on drug costs (especially now Obama Care is picking up some of the tab). This issue is not going away anytime soon which suggests Biotechs will need to revert back to an organic growth strategy of mid to high single digits.
Many will not remember VRX predecessor (Biovail). During days when organic growth was the norm, these stock types routinely traded in the 10>12X's PE range. Given that, its obvious brokerages/analysts are assuming a reversion to the mean