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Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?

To: Lighthouse who wrote (1123)	5/19/2000 4:38:00 PM
From: Biomaven	Respond to of 52153

Lighthouse, The contractual value cash streams gives INCY "real option" opportunities. No one knows what will be next, but if you have a big honey pot then you can play in whatever looks good. The problem here is that unless you sell them outright or otherwise monetize them (like the "Bowie Bonds" idea) they don't bring in much cash in the near future - they are like an annuity that will pay out over the next twenty to thirty years, starting only some five years or more from now. Anyhow, INCY has plenty of cash (courtesy Janus), and not that much of a burn rate. I would expect them and (even more so) CRA to be out shopping for munchies soon. BTW, it may well be that this whole idea is just a trial balloon to get the market to focus on this forthcoming royalty stream. Peter