1. In Vivo

Thanks to FASB, Alliances Just Got More Expensive

The latest cause of financial angst in biotech is FIN 46, the new accounting rule that could force drug companies to consolidate the expenses of their biotech partners, whether they own significant equity stakes or not. What will this affect? How about: any joint ventures, any co-development deals, and co-promotion, any R&D funding contracts-even, possibly, distribution and supply contracts.

One of the less obvious after-effects of the Enron debacle, note industry dealmakers and CFOs, has been the increasing reluctance of accountants to give clear answers. "They're more scared than we are" about issuing opinions, notes one head of business development.

And that's not what company executives want to hear during what Peter Wirth, Genzyme Corp. 's EVP and chief...

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