Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: John Metcalf who wrote (2074)	11/29/2000 12:00:08 PM
From: aknahow	Read Replies (1) \| Respond to of 52153

Accountants should stay out of trying to assign a value to research expenditures. The market should be the sole judge of the value of a company's patents and technology. XOMA signed a 10 year partnership agreement with BAX early this year. The retained share of gross profits is around 40%. The agreement contains a development clinical trial schedule. BAX pays all the cost. Potential milestones for the smallest of three sizes of indications is $35 million. What is the value of this agreement? The market is the best judge. Early next year BAX should go into clinical trials for a new indication and perhaps the markets will learn more about the agreement and revalue it.