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

To: Biomaven who wrote (2771)	2/1/2001 5:49:02 PM
From: Biomaven	Respond to of 52153

By the way we now have another profitable (sort of) biotech. (Somebody someplace should ring a bell or something. <g>) CELG scraped out a profit this quarter without benefit of any substantial one-time milestones (their $10m milestone from Novartis is being amortized over two years under the new SAB standards). "We have achieved a major milestone this quarter with the critical shift to profitability," said John W. Jackson, Chairman and Chief Executive Officer of Celgene Corporation. Only a curmudgeon would quibble that the transition to profitability came early because of interest on their fat cash balances. Still making a small loss on operations. Note for the first time they report both basic and diluted earnings per share. They turn out to be the same, but only because of lucky rounding. (If you have a loss based on ongoing operations, diluted shares will be the same as basic shares.) By the way, CELG reinforces my belief that SAB 101 is actually good for biotechs. When companies report milestones in lump sums they get dismissed as "one-time" events and ignored. When the milestone instead is spread over several quarters, it paradoxically becomes much more "real." Peter