Quarterly report pursuant to Section 13 or 15(d)

Available-for-sale investments

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Available-for-sale investments
 6 Months Ended
Dec. 31, 2011
Available-for-sale investments

B. Available-for-sale investments:

Included in “Long-term available-for-sale investments” at December 31, 2011 is a $10 million loan receivable from ChemoCentryx, Inc. (CCX), one of the Company’s equity investees. The loan bears interest at 5% with interest due annually until maturity on September 30, 2021. The loan agreement contains a number of conversion features contingent upon CCX obtaining future debt or equity financing. In addition, the agreement includes a $5 million commitment by the Company to participate in a private placement in the event of a successful public offering of CCX shares. The loan is carried at fair value based on the Company’s assessment (Level 3 input) using an internal cash flow valuation that incorporated contractual terms, maturity, timing and amount of future cash flows, as well as assumptions about liquidity. There was no change in the fair value of the investment for the quarter or six month periods ended December 31, 2011.

The Company’s remaining available-for-sale investments at December 31, 2011 are carried at fair value and are valued using quoted market prices in active markets (Level 1 input) for identical assets and liabilities.