Defined Asset Funds [Registered]
Sector Series 2000 B
Capital Appreciation Fundamental Research
Biotechnology Portfolio
A Research Focus on the Biotechnology Sector
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Defined Asset Funds - Our Philosophy
At Defined Asset Funds, we believe that knowledge and discipline are essential
to sound investment planning. For this reason, our unit investment trusts
provide the information to help you invest appropriately, and the discipline to
help you stay on course.
We've found that diversity and drive can be key to uncovering compelling
investments. To this end, our experienced team of research analysts and
securities traders search Wall Street and beyond, creating portfolios for
strong potential. Our equity funds seek to capitalize on vibrant economic
sectors, innovative quantitative strategies and thorough fundamental analysis.
Our fixed-income funds offer the regular income and stability to help balance
and diversify your investment assets.
At Defined Asset Funds, we set the foundation for each of our portfolios in
this way, because we have a very important goal in mind - yours.
Selected by Merrill Lynch Global Research and Economics Group:
A reputation for excellence
In 1951, scientists Francis Crick, James Watson and Maurice Wilkins unveiled a
profound biological finding - deoxyribonucleic acid, otherwise known as DNA.
They described the molecular structure of their Nobel Prize-winning discovery
as a double helix, or a spiral staircase with many individual steps. Today, we
recognize DNA as a monumental discover of the 20th century, marking the first
great leap of the biotechnology revolution. Defined Asset Funds [Registered]
offers you an opportunity that seeks to capitalize on the potential of this
burgeoning frontier with our . . .
Biotechnology Portfolio
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A Pioneering Sector
Since its infancy in the early 1950s, the science of biotechnology has grown
from one of theoretical possibility to one of real-world application. Many
pioneering biotechnology companies have matured, and are now capable of
producing viable products and services, as well as managing and improving
corporate earnings.
At Defined Asset Funds, we believe the biotechnology sector is just beginning
to realize its full potential for several reasons:
New Products and Applications
More new products and applications are being developed, and
biotechnology companies are spending more money on research and
development (R&D).
FDA Approval
Biotechnology products have been receiving FDA approval at a faster
pace. For example, from 1982 to 1994, a total of 15 biotechnology
products received approval. In 1999 alone, the FDA approved 22 new
biotechnology products.
An Economically Resistant Sector
Biotechnology products may be resistant to cyclical economic trends
because many drugs directly affect the quality of patients' lives.
Competitive Advantage
Due to the complexity of its products, the biotechnology industry is
not currently prone to generic competition.
Our Sector Strategy
The Defined Asset Funds Biotechnology Portfolio seeks capital appreciation by
investing in a number of potentially dynamic companies in the biotechnology
sector. The stocks were researched and selected for their capital appreciation
potential and strong fundamentals. Portfolio stocks represent a range of market
capitalizations.
The Portfolio
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Like other Defined Asset Funds, the Biotechnology Portfolio follows a
disciplined strategy. It invests in a selection of stocks for a fixed period of
time - in this case, two years. At the end of that time, you can choose to
either redeem your investment, or roll your proceeds into the next
Biotechnology Portfolio, if available, at a reduced sales charge.
A Defined Portfolio
Abgenix, Inc. ABGX
Abgenix develops antibody therapeutic products for the treatment of a
variety of disease conditions. The company's products treat transplant
related diseases, inflammatory and autoimmune disorders and cancer.
Affymetrix, Inc. AFFX
Affymetrix develops and manufactures DNA chip technology. The
company's GeneChip system acquires, analyzes and manages genetic
information to improve the diagnosis, monitoring and treatment of
disease.
Amgen, Inc. AMGN
This company discovers, develops, manufactures and markets
human therapeutics based on cellular and molecular biology. Amgen
concentrates on the areas of hematology, cancer, infectious disease,
endocrinology, neurobiology and inflammation.
Ares-Serono Group (*)(++) AREB SW
This Swiss company's core business is the treatment of infertility.
Ares- Serono also conducts research and drug development in the fields
of growth, immunology and oncology, treatment of emergencies,
bioscience and metabolism.
Biogen, Inc. BGEN
Biogen develops and tests products for the treatment of multiple
sclerosis, kidney diseases, inflammatory diseases and cardiovascular
diseases. The company also focuses on developmental biology and gene
therapy.
Chiron Corporation CHIR
A leading biotechnology company focusing on therapeutics, vaccines and
blood testing, Chiron's products also treat cardiovascular and
infectious diseases.
CV Therapeutics, Inc. CVTX
CV Therapeutics discovers and develops new small molecule drugs to
treat cardiovascular disease. The company has research and preclinical
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development programs designed to bring additional drug candidates into
human clinical testing.
Genetech, Inc. DNA
Genetech is a leading biotechnology firm that develops drugs for
oncologic, cardiovascular, pulmonary, neurological and immunological
diseases.
Genzyme Corporation GENZ
This company develops and markets biological product and devices
for orthopedic injuries and severe burns.
Human Genome Sciences, Inc. HGSI
This company specializes in discovering, sequencing and cataloging
all human genes, in order to develop novel drugs.
IDEC Pharmaceuticals Corporation IDPH
This company researches, develops and commercializes targeted
therapies for the treatment of cancer and autoimmune and inflammatory
diseases. IDEC also develops products for the treatment of certain
solid tumor cancers and various autoimmune diseases.
ImClone Systems, Inc. IMCL
This company develops interventional therapeutics, cancer vaccines
and blood cell growth factors for the treatment of cancer and related
disorders.
Immunex Corporation IMNX
Imunex's products are used to treat cancer, infectious diseases
and immunological disorders.
Immunomedics, Inc. IMMU
This company develops, manufactures and sells diagnostic imaging
and therapeutic products to detect and treat cancer and infectious
diseases.
Inhale Therapeutic Systems, Inc.. INHL
This company develops a proprietary inhalation drug delivery system to
introduce a variety of drugs to the deep lung.
MedImmune, Inc. MEDI
MedImmune develops and markets products that address infectious
diseases, transplantation medicine, autoimmune diseases and cancer.
Regeneron Pharmaceuticals, Inc. REGN
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This company discovers and develops protein-based and small molecule
drugs for the treatment of obesity and neurological, inflammatory and
muscle diseases, as well as angiogenesis, cancer and abnormal bone
growth.
Teva Pharmaceutical Industries Limited (*)(+) TEVA
This Israeli pharmaceutical company has 70% of its sales in the
United States. It develops, manufactures and markets branded and
generic pharmaceuticals, bulk pharmaceutical chemicals, medical
disposable and veterinary products.
Transkaryotic Therapies, Inc. TKTX
This biopharmaceutical company develops products for gene
activation, gene therapy and niche proteins. Transkaryotic is
currently developing products for the treatment of Hemophilia A and
Fabry disease, as well as gene activated proteins.
Vertex Pharmaceuticals, Inc. VRTX
This company specializes in drugs for the treatment of diseases
for which there are currently limited or no effective treatments.
Vertex is developing drugs for the treatment of viral diseases,
multidrug resistance in cancer and inflammatory, autoimmune and
neurodegenerative diseases.
* These issuers are foreign corporations; dividends, if any, may be
subject to withholding taxes.
+ These stocks currently pay dividends.
++ This security is listed on the Zurich Stock Exchange and quoted in
Swiss Francs.
A Research Focus on the Biotechnology Sector
Defined Asset Funds [Registered]
Buy With Knowledge - Hold With Confidence
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Make Biotechnology Part of Your Portfolio Today!
You can get started for just $250. Call your financial professional for a free
prospectus containing more complete information including sales charges,
expenses and risks.
Please read it carefully before you invest or send money.
Defining Your Risks
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Please keep in mind the following factors when considering this investment.
Your financial professional will be happy to answer any questions you may have.
* This Portfolio, which is considered speculative, is designed for
investors who can assume the increased risks associated with biotechnology
stocks. It is not appropriate for investor seeking capital preservation or
current income. Most of these stocks do not pay dividends.
* There can be no assurance that this Portfolio will meet its objective.
* The value of your investment will fluctuate with the prices of the
underlying stocks.
* This Portfolio consists entirely of biotechnology stocks whose prices
can be extremely volatile. It should not be considered a complete
investment program. This industry is subject to special risks including
significant expenditures on research and development, FDA approval and
product liability.
* This Portfolio contains international equity investments, which may
involve special risks including higher price volatility, currency
fluctuations and political developments.
Tax-Efficiency
When seeking capital appreciation, managing tax liability on capital gains can
be vital to your overall return. By holding this Fund for more than one year,
individuals may be eligible for favorable federal tax rates on net long-term
capital gains (currently no more than 20%).
Generally, dividends and any gains will be subject to tax each year, whether of
not reinvested. However, on rollovers to future Portfolios, if available,
certain investors may defer recognition of gains and losses for federal tax
purposes on stocks that are transferred to the new Portfolio. Please consult
your tax advisor concerning state and local taxation.
Defining Your Costs
You will pay an initial sales charge of about 1% the first time you buy. In
addition, you'll pay a deferred sales charge in six installments of $2.50 per
1,000 units, deducted from the Portfolio's net asset value each year of the
Portfolio's two-year life ($30.00 total).
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As a % of Public Amount Per
Offering Price 1,000 Units
Initial Sales Charge 1.00% $10.00
Deferred Sales Charge Year 1 1.50% $15.00
Deferred Sales Charge Year 2 1.50% $15.00
---------------------------------
Minimum Sales Charge 4.00% $40.00
Annual Creation and Development Fee 0.250% $2.48
(as % of net assets)
Estimated Annual Expenses 0.234% $2.31
(as a % of net assets)
Estimated Organization Costs $2.59
If you sell your units before the final deferred sales charge installment in
either the first or second year, the remaining balance of your deferred sales
charge for that year will be deducted, along with the estimated costs of
selling Portfolio securities. If you roll over to a successor Portfolio, if
available, the initial sales charge on that Portfolio will be waived. You will
only pay the deferred sales charge.
Volume Purchase Discounts
For larger purchases, the overall sales charges are reduced to put more of your
investment dollars to work for you.
Amount Total Two-Year Sales Charge
Purchased as a % of Public Offering Price
Less than $50,000 4.00%
$50,000 to $99,999 3.75
$100,00 to $249,999 3.25
$250,000 to $999,999 3.00
$1,000,000 or more 2.25
The information in this brochure is not complete and may be changed. We may not
sell the securities of the next portfolio until the registration statement
filed with the Securities and Exchange Commission is effective. This brochure
is not
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an offer to sell these securities and is not soliciting an offer to buy these
securities in any state where their offer or sale is not permitted.
[logo] Printed on Recycled Paper 32762BR-4/00
[copyright] 2000 Merrill Lynch, Pierce, Fenner & Smith Incorporated. Member
SIPC.
Defined Asset Funds is a registered service mark of Merrill Lynch & Co., Inc.
