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<SEC-DOCUMENT>0000927946-06-000052.txt : 20070112
<SEC-HEADER>0000927946-06-000052.hdr.sgml : 20070112
<ACCEPTANCE-DATETIME>20060328145417
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ACCESSION NUMBER:		0000927946-06-000052
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20060328

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BIOANALYTICAL SYSTEMS INC
		CENTRAL INDEX KEY:			0000720154
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH [8731]
		IRS NUMBER:				351345024
		STATE OF INCORPORATION:			IN
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		2701 KENT AVE
		CITY:			WEST LAFAYETT
		STATE:			IN
		ZIP:			47906-1382
		BUSINESS PHONE:		3174634527

	MAIL ADDRESS:	
		STREET 1:		2701 KENT AVENUE
		CITY:			WEST LAFAYETTE
		STATE:			IN
		ZIP:			47906-1382
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>March 28, 2006</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Ms. Sasha Parikh</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Staff Accountant</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Division of Corporation Finance</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>United States Securities and Exchange Commission</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>450 Fifth Street, N.W., Stop 4-5</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Washington, D.C. 20549-7010</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:15.38%; text-indent:-7.69%;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="90%" style='margin-left:.5in;border-collapse:collapse'>
    <tr >
        <td width="8%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p  align=left style='text-align:left'><font size=2>Re:</font></p> </td>
        <td width="91%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Bioanalytical Systems, Inc.</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Form 10-K for Fiscal Year Ended September 30, 2005</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Filed January 18, 2006</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>File No. 0-23357</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:15.38%; text-indent:-7.69%;text-align:left;'><font size=2>&nbsp;</font></p>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dear Ms. Parikh:</FONT></P>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:7.69%;text-align:justify;'><font size=2>We have received your letter dated March 14, 2006, and received by fax in our office on that same day, detailing the Staff's review of the above-referenced filing (the "Form 10-K"), which was a follow-up to your letter of February 9, 2006 and our response dated February 16, 2006. This letter responds to the Staff's comments on the Form 10-K.  For your convenience, the subheadings and order of responses set forth below correspond with the subheadings and order set forth in the Staff's comment letter.  The Staff's comments are in bold.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="12%" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.</font></b></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Please revise your filing to provide the disclosure provided in your response to our comment 1.</font></b></p> </td> </tr></table>


<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:7.69%;text-align:justify;'><font size=2>We are prepared to amend Item 7 to our Form 10-K; however, in our telephone conversation on March 27 you indicated that this comment alone may not warrant a revision, depending upon your review of our response to comment 2 (discussed below).  Should we be required to amend the Form 10-K, we would use identical language to that included in our response of February 16, 2006.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="7%" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="12%" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2.</font></b></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Please refer to your response to our comment 2.  It does not appear that the lab sites meet the definition of an intangible asset as defined in FAS 142.  This asset would appear to be property and equipment that should be depreciated over its estimated useful life in accordance with your accounting policy disclosed in Note 1.h.  Please revise your filing or tell us why you believe a revision is not applicable.</font></b></p> </td> </tr></table>

<p style=' margin-bottom:12pt; margin-top:0pt;margin-left:7.69%;text-align:justify;'>
<font size=2>FAS 142 defines Intangible Assets as &#147;Assets (not including
financial assets) that lack physical substance.&#148; In that regard, we believe
that the &#147;FDA compliant facility&#148; meets the definition. This value was
determined by an independent valuation expert, that looked first at the value of
the acquisitions that could be ascribed to the physical assets acquired, then at
what, and of what value, intangible assets were in the transaction. Being FDA
compliant (referred to by the FDA as practicing Good Laboratory Practices, or
GLP) is not a license, but rather, the confidence of our clientele (based on
their audits of our practices) that information provided by our laboratories
will stand up to FDA scrutiny and that their filings will not be negatively
impacted by subsequent FDA audits of our facilities. The value assigned to this
intangible asset was derived by using the replacement cost method (i.e. what
would be the cost, aside from the cost of physical assets, to make a new
laboratory compliant with GLP). It is very closely related to goodwill, in that
it is the ongoing ability of the acquired companies to conduct business.
</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:7.69%;text-align:justify;'><font size=2>
Upon review, we believe that our description of this intangible is subject to
interpretation, and that the differentiation of this intangible asset from what
is normally treated as goodwill is insufficient to create a separate intangible
asset. The accounting we have used for this is identical to that used for
goodwill. Rather than amend our filings, with the inherent confusion that
creates, we propose that we prospectively combine this intangible asset with
goodwill.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:7.69%;text-align:justify;'><font size=2>
The Company acknowledges that:</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:15.38%; text-indent:7.69%;text-align:justify;'><font size=4><b>&#149;</b></font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>
the Company is responsible for the adequacy and accuracy of the disclosure in
the Form 10-K;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:15.38%; text-indent:7.69%;text-align:justify;'>
<font size=4><b>&#149;</b></font>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>staff comments or changes to disclosure in response to staff comments do
not foreclose the Commission from taking any action with respect to the Form
10-K; and </font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:15.38%; text-indent:7.69%;text-align:justify;'><font size=4>
<b>&#149;</b></font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font
size=2>the Company may not assert staff comments as a defense in any proceeding
initiated by the Commission or any person under the federal securities laws of
the United States.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:7.69%;text-align:justify;'><font size=2>
We appreciate your review of our responses to your comments. Should you have
additional comments or questions, please contact me at (765) 497-5829 or, if you
prefer, my fax number is (765) 497-8483.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:53.85%;text-align:justify;'><font size=2>Very truly yours,</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:53.85%;text-align:justify;'><font SIZE=2>BIOANALYTICAL SYSTEMS, INC. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:53.85%;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:53.85%;text-align:justify;'><font size=2>/s/ Michael Cox</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>



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