There's new math at work in valuing biotech companies, as witnessed by the recent deals by AstraZeneca and Merck. It's interesting to see that some of the numbers, including the values on some of the recent licensing pacts, have been eliciting a significant amount of kick-back from the analysts. The simple fact is that biotech companies have been reaping the rewards of greater efficiency and innovation. Close to half of the drugs in Phase I and II now are biologics. We're seeing a big surge in early stage trials because of the biotech revolution and the big pharma companies know that that is where their future lies. Another reason for the bigger emphasis on buyout and licensing deals can be seen in the weak figures being fetched in IPOs. We're seeing the full integration of biopharma now, with the most advanced biotech companies being either bought out or fully allied on the development side. It's been a long time coming, and these prices will only increase. - John Carroll