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This high P/E should not be cause for concern for two reasons. First, if you don't understand the Redemption event check out Genentech's SEC filings and earlier threads in this board for an explanation. These charges absolutely kill the earnings figure while not having anything to do with the business whatsoever. So using the pro forma EPS we now get a P/E of 78.5, which is still high by most accounts, but definitely not as bad as 600.

Okay but it's still money off the income sheet. If that wasn't on there they'd still have the cash in the bank, wouldn't they? Or is this just some kind of funny money? Any accountants out there? I just don't fully comprehend how it can come out of their income without really affecting just that...their income.

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