Biotech Values

[TaxDude]

Red: About the $ big-pharma re-patriation:

Companies are required to repatriate the cash prior to 12-31-05, but they are not required to spend it prior to 12-31-05. They must have a "qualified re-investment plan" in place prior to the repatriation, but the plan can be very general in nature. I'm not 100% sure about the specifics (I think the IRS regs just cme out)... but I think if a company reinvested the repatriated earnings over a 2 or 3 year time frame, this would be okay. Thus, I would not expect a flood of acquisitions prior to 12-31-05 simply due to this tax incentive.