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Biotech / Medical : Biotech Valuation
CRSP 52.51+2.7%Nov 14 9:30 AM EST

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To: Biomaven who wrote (2248)12/7/2000 1:35:44 PM
From: tom pope  Read Replies (1) of 52153
 
Peter, there's an irony in here - if the acquiring company may now leave the difference of price over book on the balance sheet indefinitely, isn't the net effect the ex post facto capitalization of R&D?
Edit- in fact it's better than that (or worse, depending on your point of view) - if the company is sold at a significant premium, a great deal more than the expensed R&D might end up on the asset side of the acquiror's balance sheet!
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