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

To: Icebrg who wrote (8724)	6/22/2003 7:04:20 AM
From: Icebrg	Respond to of 52153

Profitability among companies included in the NBI-index One comment, I think I dare to make. It is surprising to see how heavy the struggling group is in the R&D department. They are the group that spends the most. Without competition. Equally it is noteworthy that their S, G and A figures are so high. Slightly higher than in the group with limited sales (revenue less than 100 mUSD per year). It does cost a lot to keep a sales force on foot, active and happy. Something very few in the struggler's group have to worry about. But there are a lot of CEOs and management types who should be awarded in line with the "Industry Standards". And with 41 companies in the struggling group compared with 18 in the small revenue group, that might make a difference. If it costs 3 mUSD per year to keep the CEO, the management and the directors satisfied, that cost alone would account for almost 70 mUSD. Some kind of consolidation might be positive for the biotech group as it strives towards profitability. Erik

To: Icebrg who wrote (8724)	6/22/2003 7:20:30 AM
From: Icebrg	Read Replies (1) \| Respond to of 52153

Profitability among companies included in the NBI-index One comment just to stress the fact that these are not yet complete figures. Anyone thinking that the development Q4:02 to Q1:03 in the BIG group looks suspicious is perfectly correct. Chiron is not included yet in the figures with their Q1-figures. They were not available at Yahoo. I see that they have posted their 10Q to SEC's database. With revenue of 325 mUSD, R&D at 82 and S,G&A at 73 that inclusion will make a difference to the group. Omissions in the smaller groups will mean less to the complete figures. Erik