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Biotech Multiples Are Soaring But M&A Is Dead

Weird, but 2013 revenue (blue bar) and earnings (gray bar) expectations are lower than 2012. Biotech companies will be begin to report first-quarter earnings soon but Meacham and Kasimov expect strong results across the board, which means analysts and investors will be raising their 2013 forecasts. The "Beat and Raise" routine is usually good for stock prices.

If there's something to worry about in this chart, it's the outsized top-and bottom-line expectations already set for 2014 and 2015. But then, Gilead Sciences and Biogen Idec should be humming with their respective hepatitis C and oral multiple sclerosis drug launches.

One more slide to check out and it's a strange one. Check out the next page: Biotech mergers and acquisition activity is non-existent!

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