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Biotech / Medical : Agouron Pharmaceuticals (AGPH) -- Ignore unavailable to you. Want to Upgrade?

To: Joe E. who wrote (5078)	8/5/1998 3:19:00 PM
From: John Metcalf	Read Replies (1) \| Respond to of 6136

Agouron's 10-K addresses the availability of tax-loss carryforwards, and explicitly states that they expect to generate sufficient income to utilize them. In this regard, they will get the same advantage that big pharmas, or any other profitable company, has in R&D. In fact, they have tax-loss carryforwards, in addition to current research spending. Applying the nominal tax rate (40%) and the effective tax rate (15%) described in the 10-K suggests that they could choose to reinvest 85 cents of each dollar earned, or let 60 cents drop to the bottom line. I would rather see AGPH spend money on research than spend it on taxes. What am I missing?