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Biotech / Medical : Biotech Valuation
CRSP 55.08-2.9%Dec 26 9:30 AM EST

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To: IRWIN JAMES FRANKEL who wrote (1393)8/4/2000 8:10:33 PM
From: John Metcalf  Read Replies (1) of 52153
 
I'm in the R&D-should-be-capitalized camp. It's easy to see the asset when it eventually becomes a drug or marketed product, but harder to see the asset when it is R&D in process. In fact, Scott can't seem to see this asset at all-:)

Irrespective of whether R&D has produced a patent asset or a product asset, there are intermediate steps of achievement along the way -- say new animal disease models, newly noticed correlated events, new assays, production methods, etc. These learning curve elements expand the company's capability beyond the product under development and surely add to value, at least as viewed by an acquirer.
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