Value Investing News

The $46.8 billion Roche/Genentech merger is hailed as a sign of biotech's maturity--two substantial companies joining forces. But a closer look shows that this deal is much like the big pharma mergers which generate short-term balance sheet improvements and massive lay-offs. The major biotechs share big pharma's desperate need to fill their pipelines with someone else's innovations.

Everyone agrees that the merger will go through; however, few realize that DNA has the upper hand at the negotiating table.

There has been a lot of strong recommendations around biotech lately on Contrarian Profits. Phase 1 Investor editor Rob Fannon recently wrote that biotech was one of the few market sectors to show positive returns as many other stocks were getting hammered. He sees great values in the sector.

If the deal does go through it may be bad news for Roche and Genentech shareholders, according to Phase 1 Investor editor Rob Fannon in The Growth Stock Wire. But it would be good news for the biotech industry as a whole…

The biotech industry has failed in its attempt to function as a science-based business

This week's Festival of Stocks is up at SINLetter. There are thirteen good blog posts to read in this week's festival.

For those investors not keen on spending countless hours pouring over financial statements and company profiles, not to mention the confusing scientific and technical jargon that biotech companies harbor in their annual reports, Exchange Traded Funds (ETFs) may be the better choice for investing in the biotechnology industry.