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To: cruzbay who wrote (155777)	4/12/2005 11:32:26 PM
From: Biomaven	Read Replies (1) \| Respond to of 275872

where would you now peg the options expensing losses per quarter? It's partly a guess at this point, but I estimate 14m non-exchange options for 2004, and if we assume the same Fair Value - roughly $8/share as for all 2004 options - we get a total expense for the 2004 non-exchange grants of about $112m. I don't know their vesting schedule, but if we assume 4 years, that would imply about $25m a year pre-tax, or a somewhat less after forfeitures. (That assumes straight-line amortization - I don't know if they use that or the FIN 28 accelerated amortization). So that's about $6m/quarter pre-tax, just from the 2004 grants. The 2005 and ongoing grants get tacked on top of that, but I would assume they would moderate their grant policy, and also that the Fair Value of new grants would drop sharply once they use a more realistic volatility. I don't know what there is from their 2003 grants that didn't get exchanged and will still be unvested by June 2005. So potentially my estimate is low. Peter