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Biotech / Medical : ACMI - Accumed Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Sigmund who wrote (1176)	1/17/1998 3:11:00 PM
From: CARYTRE	Read Replies (1) \| Respond to of 1894

Sigmund, Since an existing product line is being contributed to this deal Accumed has to recapture their development costs, as part of their profit on the sale of goods, Until it is recaptured. All monies used for product development are on the asset side of the balance sheet in some form or another. As they are occur I think they accrue in the the form of paid in capital. If a product line becomes worthless or is discontinued, a write-off of this intangible asset should occur. I believe at the same time this capitalization allows for tax abatement thru depreciation over a certain number of years. So yes I imagine that this value will be a component of the value on the assets transfered. I guess they are all going to have to haggle among themselves and determine what kind of return they should be getting on their product lines.No doubt recapturing r&d expenses will be discussed. Regarding announcement timing, I for one am happy to hear anything. I imagine the phone call on Tuesday will answer your questions. regards, C.S.