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Biotech / Medical : 2011 Biotech Charity Contest -- Ignore unavailable to you. Want to Upgrade?

To: technetium who wrote (153)	2/6/2011 1:52:30 PM
From: fred hayes	Respond to of 400

If it's tradable why not treat it like any other equity. Suggest it just be added to the holder's portfolio, not fair to value it at zero...(or maybe I don't understand something here) (nope, I don't have any)

To: technetium who wrote (153)	2/6/2011 3:38:53 PM
From: Biotech Jim	Read Replies (1) \| Respond to of 400

CVRs, contingent value rights, represent potential future value dependent upon future success. LGND has made a few deals lately regarding CVRs from some of their buyouts. For example if certain specified programs hit success, or if programs are outlicensed, then these CVRs represent payouts to the original shareholders. Also, as another example GENZ has discussed with SNY a CVR for Campath if it hits it big in rheumatoid arthritis. Part of the buyout discussion as reported in the public press has resulted in a disagreement as to the current/future value of Campath, thus the CVR. My view is that for our Biotech charity contest there should be no value provided for a CVR, since it simply may not happen and it would be hard if not impossible to put a NPV on the CVR. BJ