Stock price when the opinion was issued
In past years, biotech was the safe trade, but this year risk is back, so these stocks have fallen out of favour. Also, there are so many drugs in trials now and big pharma needs new product. She's looking at Gilead and Moderna, because they have low PEs and alot of drugs in development. However, the overall sector is risky.
This makes him uncomfortable. He doesn’t like the concentration. They derive over 60% from their hepatitis C drugs, which have been very successful. There are a few issues. Very high cost at about $90,000 for a cure which is a 90-day script. A lot of people are after them to get the price down. There is also competition from other drugs. It is a cure, which is great from a social standpoint, but from a business standpoint do you want to invest in a company where the drug will no longer be needed.