There is, according to Wall Street, no worse investment in biotech than Galapagos NV.
The Belgian company trades at an enterprise value approaching negative $2 billion. That means its liquid assets, mostly cash, are worth more than the company itself. It means, according to the market, that every dollar Galapagos puts toward inventing new drugs would be better spent doing pretty much anything else.
“Basically the company is being valued as though they are lighting that cash on fire,” said Emily Field, an equities analyst at Barclays in London.
This article is exclusive to STAT+ subscribers
Unlock this article — plus daily coverage and analysis of the biotech sector — by subscribing to STAT+.
Already have an account? Log in
Already have an account? Log in
To submit a correction request, please visit our Contact Us page.
STAT encourages you to share your voice. We welcome your commentary, criticism, and expertise on our subscriber-only platform, STAT+ Connect