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

To: Icebrg who wrote (8941)	8/16/2003 5:37:52 PM
From: Icebrg	Read Replies (1) \| Respond to of 52153

Oxigene - OXGN I believe that the latest 10Q may very well become a classic. When they issued their Q2 PR the company did not - in contrast to all other biotech companies I have seen - separate G&A costs from R&D costs. There was just one lump sum. The 10Q gives (in my opinion) the explanation. There were actually almost no R&D costs. From the report: Total operating expenses for the three months ended June 30, 2003 and 2002 amounted to approximately $1.9 million and $2.8 million, respectively. Research and development expenses decreased to approximately $0.4 million during the three months ended June 30, 2003 from approximately $1.2 million for the comparable 2002 period. The decrease of approximately $0.8 million was primarily attributable to the reduction of research expenses with Baylor and Lund Universities as well as narrowing the Company’s focus from multiple projects conducted with various contract research organizations (“CRO”) to just one in the current year. Non-qualified stock options (“NQSOs”) granted to certain consultants and advisory board members resulted in research and development expenses relative to the fair value of the options that vested during the applicable reporting period. During the three months ended June 30, 2003 and 2002, respectively, the Company recorded approximately $0.2 million and $0.1 million, respectively, of research and development expenses related to options issued for services provided by non-employees. If I understand this correctly (maybe I don't) about half of the R&D cost of 0,4 mUSD were actually option-related costs. "Real" R&D costs were only 0,2 mUSD. While Administrative and General costs were 1,5 mUSD. It should also be noted that during the same period (April - June) Oxigene's market capitalization increased from 20 to 138 mUSD. Thanks to impressive action on the PR side. Erik