sirtex us media coverage valuation The media coverage along with...

sirtex us media coverage valuation The media coverage along with the OTC listing will bring a whole new hoarde of US investors to the Sirtex story. In the US, biotechs usually are typically priced at PEG ratios of at least 2;1 ratios . PEG ratio is the Price earnings multiple/growth rate.Genentech sells at 63x P.E and growth rate is 30% PEG ratio= 63/30=2.1 The higher the PEG the more expensive the value of the share. Bioshares estimate of 100 million in revenue and net of 40 million for Sirtex this is 40/55million shares=73 cents in earnings if Sirtex was owned by big pharma right now as Huntley estimates that A LARGER SALESFORCE LIKE BIG PHARMA COULD KEEP UP WITH THE GROWing demand of Sir Sheres if they owned Sirtex. At $2.5 a share/73 cents= 3.2 PE with $140 % growth. PEG ratio for Sirtex = 3.2/140= .02. This means Genentech is 2.1/.02= 105x more expensive than Sirtex based on current growth rates and P.E ratios. It is easy to see why there are 4-5 major pharmas looking to acquire the Sir sphere technology from Sirtex and these companies need to gain competitive advantage over each other in the high margined oncology market.