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

To: tom pope who wrote (2069)	11/20/2000 7:42:58 PM
From: nigel bates	Read Replies (1) \| Respond to of 52153

The amounts expended on R&D create an asset called intellectual property Capitalising R&D rather gives the impression that the 'asset' is of more than provisional value. Given a rudimentary knowledge of biotech history, is this either realistic or prudent ? One can write down buildings, capital equipment, etc over a relatively predictable timescale, but biotech R&D ? For every project that is a 'hit', there are many more that are misses. Maybe a large pharma can average these out over time, and come up with a model, but I just don't think it washes for biotechs. ...and that negative EPS serves as a much better risk warning than the boilerplate at the bottom of SEC filings. nig