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

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To: tom pope who wrote (2249)12/7/2000 1:49:52 PM
From: Biomaven  Read Replies (1) of 52153
 
tom,

isn't the net effect the ex post facto capitalization of R&D?

Yes, but as I mentioned and Nigel re-iterated, here there's an arm's length transaction that demonstrates that the R&D has value at the time of the merger. Thus this is a less extreme position than recognizing that R&D spending produces an asset in the first place.

Key though is that the accountants are finally moving to a recognition that intangible assets are not necessarily decaying assets.

Peter
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