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Biotech / Medical : Biotech Valuation
CRSP 54.88-0.4%3:25 PM EST

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To: NeuroInvestment who wrote (5196)12/20/2001 8:22:53 PM
From: Biomaven  Read Replies (2) of 52153
 
Thanks, Harry.

At least the money doesn't flow right back to CEPH as revenue, which is what ELN and others managed. (The JV intermediary would hire the parent to perform the research, and so part of the cash did a U-turn and came back as revenue). I thus don't view this as similar to ELN's practices.

Given the tyranny of earnings straitjacket you refer to, I think this is a smart deal. The key thing about building a market is its cumulative nature - spending the bucks now provides a revenue stream annuity that lasts until the patent expires.

Peter
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