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Biotech / Medical : Munch-a-Biotech Today -- Ignore unavailable to you. Want to Upgrade?

To: BioInv who wrote (240)	3/2/1999 4:46:00 PM
From: Biomaven	Read Replies (1) \| Respond to of 3158

BioInv, The basic rationale for this in biotechland is accounting - the parent wants the R&D expense off its own books. If you do the incantations right, you may be able to achieve both this and still get the tax benefits. There is also some benefit in having the employees of the spin-off focused on just their own company, with options linked to its own stock price. The most successful proponent (not biotech) of the "spawn-'em-and-spin-them-off" game was Thermo-Electron. I think they took a good idea to extremes, though, and lately I think they've been scaling back on the idea. Peter Peter