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

To: Biomaven who wrote (3086)	3/14/2001 9:09:23 PM
From: Ian@SI	Read Replies (1) \| Respond to of 52153

Peter, I had the impression that options were counted in the fully diluted shares as long as they are in the money regardless of whether or not the company is profitable on any basis. An optionholder may well convert options to shares any time it is profitable for him to do so regardless of the company's profitability. It was that threat of dilution that I understood the FASB rule was attempting to expose. I'm not an accountant. I could be wrong. Ian.

To: Biomaven who wrote (3086)	3/15/2001 12:35:02 AM
From: Jibacoa	Read Replies (1) \| Respond to of 52153

<<the offering happened only part way through that reporting period. 18 million shares is the number now outstanding>> Well, I am not an accountant either and was just curious about ALXN numbers. (not that I have a significant monetary interest in the issue <g>. ) I ran a short computation based on their numbers and came with a difference of $18.76 million in extra cash reported that I could not account for. This was the way I tallied it: They raised $120 million in March 2000 with the 5.75% convertible( at 106.425) 7 year notes. They sold 2.3 million shares of common to USB Piper-Jaffray on November 1 for $208.5 million (net after $225,000 financing expenses) 120 million + 208.5 million = 328.5 million On their financial report: cash on Jan.2001= $369.904 million cash on Jan.2000= $62.261 million 369.904 minus 62.261 = $307.643 million (more at year end) They had an operating loss of $39.619 million. (The interest received on the cash covered the interest they had to pay on the convertible notes) To the $328.5 million raised during the year we have to subtract the $39.619 million in operating loss: 328.5 million minus 39.619 million = 288.81 million 307.643 million (the amount their cash increased during the year) minus 288.81 million (the amount of cash raised minus the operating loss)= 18.76 extra million (in cash increase) not apparently related to the financing during the year. I guess they had some other source of income that I an not aware of. Bernard