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Biotech / Medical : T/FIF, a New Plateau -- Ignore unavailable to you. Want to Upgrade?

To: Biomaven who wrote (1113)	4/16/2002 12:08:30 AM
From: John Metcalf	Read Replies (1) \| Respond to of 2243

Following Peter's post, Viropharma had $240mm cash at 12/31/01, and $180mm in long-term obligations. The current bond-ghoul valuation view that a biotech is worth its salvage value is too severe for the long-term. It allows no value for intellectual property, property-plant-equipment, nor net present value on a discounted cash flow basis. There are 20mm shares out, so a bond-ghoul might see $3/share in value. If one believes in biotech at all, it is an extreme of pessimism to value a research company at liquidation value. There are many biotechs going through this kind of valuation. The most absurdly undervalued, to me, seem to be SEPR and ELN. Sepracor has multiple opportunities to turn its cash into new products, and has three approved products now, and sixty more potential products, that we know about. ELN seems to be daily monetizing its JV's, which Mr. Market somehow views as dilutive, rather than accretive, to value. Absurd! Here's a ref for Viropharma's most recent qtrly announcement: biz.yahoo.com

To: Biomaven who wrote (1113)	4/16/2002 12:20:57 AM
From: LLCF	Respond to of 2243

Hmmm, interesting. DAK

To: Biomaven who wrote (1113)	4/16/2002 12:48:22 AM
From: scaram(o)uche	Read Replies (1) \| Respond to of 2243

>> has a bunch of busted converts << One, due 2007. But Peter's correct, Dave....... $180 million of it is the convert, and they may have to return $20M to Aventis. >> Be interesting what their balance sheet would look like if they used some of the cash to repurchase part of the converts << Hmmmmmm........ nah. The new HCV molecule isn't to phase I yet. They need to cash. edit.... sorry, I see that John had also answered.