Aurora Biosciences (ABSC) Message Board

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Biotech / Medical : Aurora Biosciences (ABSC)

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To: nigel bates who wrote (339)	1/10/2001 2:13:24 PM
From: tuck	of 359

nigel, Now we know why ABSC has tanked. The outline of their presentation: biz.yahoo.com Breakeven this year due to acquisition indigestion and increased R & D spending. ABSC makes deals fast and furious, so these could provide upside, even though anticipated. Some have characterized ABSC's business plan as unfocused. I disagree. I'm in the camp that says a drug discovery company can earn higher multiples by using its technology to develop drugs for itself, as well as using partners for others to keep the whole thing going. ABSC, with its internal UHTSS cranking away, is adding this development capability. Of course, higher multiples don't come until you have steadily growing earnings. ABSC's recent moves may have pushed that back a bit, but they have become a stronger competitor as a result of their investment. It seems to me they are continuing to execute, and I like it at these levels. The mere breakeven year has probably already been priced in, and I don't foresee much more downside. My humble two cents. Cheers, Tuck

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