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Biotech / Medical : Biotech Valuation
CRSP 48.86-1.7%Feb 10 3:59 PM EST

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To: Biomaven who wrote (2064)11/20/2000 4:27:39 PM
From: nigel bates  Read Replies (3) of 52153
 
"...and therefore traditional accounting systems are at loss to capture much of what goes on...
So why try ?
There's no accounting event because no money changes hands."
Good.
The 'value' created when a drug passes a clinical trial is still provisional, unless there's a milestone payment involved, ditto software going beta. If it's anyone's role to value this, it's the market's (or a bunch of analysts', LOL), and we've seen how wildly erratic such attempts are. Accountants should stick to doing what they do best, & leave the (over)imaginative stuff to others.
By all means report R&D expenditure as a separate item, but remember that it's still expenditure.

nig
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