There may indeed be a biotech bubble, but, alas, it won't be because of Kerx. Zerenex just doesn't have that kind of potential.... It may start with Vivius/Qnexa, and continue down the road with others (Zalicus/Synavive), but Zerenex isn't THAT kind of blockbuster...
It is for Keryx... for a $110M mkt cap company to have several hundred million in sales and potentially its annual earnings similar to its mkt cap, the stock could rise 10X if P/E = 10, 15X if P/E = 15, etc.
For the large bio/pharma that could buyout KERX and completely eliminate overhead, the value could be even higher.
Don't forget the $300 million NOL, $31 million in cash. and the JT & Tori deal. These are things that are quantifiable, and together are worth well over $1 per share. At 1.58, you are getting Zerenex for next to nothing.