Trying to use a value investor's methodology when looking at a developing company, especially in tech or biotech, is useless. Even Netflix isn't making a profit -- do you see it being slammed down with a low market cap because of that?

When people value biotechs, they are betting on the future of the technology.
And grotty suggested that a deal could include royalties on drug sales. It's absurd to try to place a value on a company without factoring in the future value of its products. If value investing were the predominant method in today's market, you sure wouldn't see the broad market averages being at these high levels.

It just doesn't work for developing companies, especially biotechs.