Wow lots of posts over the weekend, so I'm sorry about replying to such an old message. MarkVoelker said the following:
By the way, this points up another untruth claimed by shortseller Asensio. He states in his reports and news releases that BioTime "Has no assets." Eight patents and an Exclusive License Agreement with a major pharmaceutical company form a valuable franchise indeed and are quite a set of assets. This is in addition to the $6 Million in cash the company has in the bank. If he knows BioTime owns these patents, he's lying to his clients. If he doesn't, he's incredibly negligent in his research. ---Mark A. Voelker
Unless a patent is lisenced in, whereupon a value can be placed on it, the patent is not counted on the balance sheet, ergo he is not lying, at least about the patents. This is to prevent companies from inflating their balance sheet by overvaluing their patents
"a_1" in message 1247 took issue with my claim that BioTime's six patents covering Hextend and their other solutions are assets, and that Asensio was negligent or dishonest in claiming that BioTime "has no assets" and "no valuable technology."
"a_1" said: "Unless a patent is lisenced (sic) in, whereupon a value can be placed upon it, the patent is not counted on the balance sheet, ergo he is not lying."
BioTime's patents do in fact cover the solutions licensed to Abbott Labs for manufacture and distribution. True, patents and other intangible assets are not included on a company's balance sheet *when calculating that company's book value.* But book value is not a useful measure of reasonable market value for a company like BioTime, and Asensio's bringing up book value (even though he doesn't call it that) is misleading. Do you find, on the balance sheet of the Coca-Cola Company, a dollar value attached to the secret formula for Coca-Cola the beverage? Yet this formula is the foundation of most of that company's earnings potential, not Coke's material assets and cash working capital.
Similarly for BioTime. Based on the results of the Phase 3 clinical trials, and on studies like R. L. Bick's paper, Hextend is clearly superior to generic hetastarch in normal saline solution, demonstrating a rate of complications due to bleeding 4 times lower than the generic solution. This is the real asset at BioTime, not the company's lab equipment and cash on hand.
lying--he is certainly putting his spin on things, but lying he is not. so let�s go back to the beginning.
In message 1100, you say:
>By the way, this points up another untruth claimed >by shortseller Asensio. He states in his reports >and news releases that BioTime "Has no assets."
>Eight patents and an Exclusive License Agreement
>(sic) with a major pharmaceutical company form a
>valuable franchise indeed and are quite a set of
>assets. This is in addition to the $6 Million in
>cash the company has in the bank. If he knows
>BioTime owns these patents he's lying to his
>clients. If he doesn't, he's incredibly negligent
>in his research. > ---Mark A. Voelker
Your argument seems to be as follows:
Asensio said that BioTime has no assets. Eight patents and an exclusive license agreement are assets.
ergo, Asensio is lying or incredibly negligent in
I couldn�t find where he stated that BioTime �Has no assets�. Maybe you were paraphrasing or taking something out of context, but I think Asensio�s argument is that not only does their lead product have little potential, but there are few underlying assets of the company, tangible or otherwise.
>Even assuming the most optimistic outcomes, we >found no legitimate reason for BioTime's current >$135 million market capitalization. As of December >31, 1997 BioTime had $6.3 million in cash and >total assets of $6.7 million. Among its few non- >cash assets are a total of $127,000 in equipment. >In its over seven-year history, BioTime no product
>sales and cumulative losses of $12.8 million. Even
>based upon an unrealistically favorable assessment
>of BioTime�s Hextend profit potential, we value
>the stock at well below $2 per share.
But I�ll give you the benefit of the doubt, and assume that somewhere he did say-and was not just quoted as saying-that BioTime has no assets.
To me, Asensio was pretty obviously describing BioTime�s balance sheet and/or its book value. Now if you believe Hextend has great potential, I admit BioTime�s current book value really doesn�t matter. However, his argument--which I don�t *completely* agree with--is that Hextend is a non-improvement over any existing product in a crowded marketplace of decreasing size. If you believe that the stock is overvalued based on optimistic forecasts of Hextend sales like he does, then you need another way to value the stock. Most people would look to the book value of the company.
In message 1247, I said:
>Unless a patent is lisenced in, whereupon a value
>can be placed on it, the patent is not counted on
>the balance sheet, ergo he is not lying, at least
>about the patents. This is to prevent companies
>from inflating their balance sheet by overvaluing
Now, my point in that posting was this: BioTime cannot value its patents on its balance sheet unless it bought them from someone else, in which case it can value them and depreciate them. Moreover, they are only valuable *IF* Hextend makes money.