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Biotech / Medical : Munch-a-Biotech Today -- Ignore unavailable to you. Want to Upgrade?

To: John Metcalf who wrote (802)	1/14/2000 11:02:00 PM
From: Biomaven	Read Replies (2) \| Respond to of 3158

Good point on pooling, John. However the pooling/purchase issue has partly been finessed by allowing companies to report their earnings multiple ways. Thus you now see: Earnings for the year were $1 per share after accounting for amortization of goodwill from acquisitions. Before these non-cash expenses, we earned $1.50 per year (Hint, hint: $1.50 was our "real" earnings before the academic accountants were let loose). Or being more aggressive, you even see the $1.50 highlighted and the $1.00 buried in the verbiage. Doing this takes some of the pressure off of trying to maximize the write-down of acquired in-process R&D and then ending up in a losing fight with the SEC. Pooling allows you to ignore all this, and so is still better of course in allowing you to present a simple (and favorable) story to your shareholders. Peter