Large BUY - ex insider/ ex CSO / new consultant - Dr Tillett, page-97

Where did you get that figure from?

Average PE ratio of revenue producing big pharma right now is approximately 30 (lower is 15 and higher is 90P/E)

If we are talking about an approved, revenue producing drug then the calculations are vastly different.
A company producing $10b in revenue or sales per year, assuming 49% margin (4.9b) at a P/E ratio of 30 would equate to a value of $150billion, if you wanted to buy that company, you would then be adding a premium to this figure. This rarely happens and is why BP do most of their deals at P2/P3 prior to revenue because they can get away with a 300-500% premium instead of a 1500+% premium to revenue if they wait a couple of years for the biotech to de-risk.

I believe Daniels example was assuming prior to approval, on clinical efficacy but risk adjusted with an industry average multiplier of 3-5x on estimate peak revenue (Via the triangle report) which does in fact land you above $40billion.