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Biotech / Medical : Munch-a-Biotech Today
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To: Biomaven who wrote (512)7/29/1999 11:38:00 AM
From: LLCF  Read Replies (1) of 3158
 
<Personally I think that the way R&D is accounted for in biotechland is misleading. I would much prefer to see the method they use for oil and gas exploration - you capitalize expenses, and then write them off if you have a dry hole>

I agree, theoretically this makes the most sense to me.. very basic matching of expenses with the revenues it produces... on the other hand, now that the 3rd tier has blown their 100mill, an aquirer will be glad it's written off and gone forever... especially since the stocks have followed their cash on hand straight down :).

DAK
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