This excerpt taken from the ELN 6-K filed Apr 11, 2005.
Financial Assets and Impairment
We carry financial assets, primarily investments in emerging drug delivery, pharmaceutical and biotechnology companies, at cost less provision for impairment in value. The carrying values of financial assets are assessed using established financial methodologies, including quoted market prices for quoted equity securities. Private equity investments and non-traded securities of public entities are typically assessed using methodologies such as the Black-Scholes option-pricing model, the valuation achieved in the most recent private placement by an investee, and an assessment of the impact of general private equity market conditions. The factors affecting carrying values include both general financial market conditions for pharmaceutical and biotechnology companies and factors specific to a particular company. Different market conditions, negative developments or news affecting a specific investee could result in a material impairment charge for the applicable investment. Fixed and current financial assets amounted to $91.9 million at 31 December 2004 (2003: $494.5 million). For additional information on these investment charges, gains and losses, please refer to Note 13 to the Consolidated Financial Statements. We believe that we have used reasonable estimates in assessing the carrying values of our financial assets.