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Biotech / Medical : Biotechnology Value Fund, L.P.

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To: biowa who wrote (969)10/2/1999 1:25:00 PM
From: BiomavenRead Replies (2) of 4974
 
biowa,

If [GZMO] starts going gangbusters, isn't awful easy for "Daddy" (as DAK puts it) to reasorb it?

Well these tracking entities are indeed weird beasts. As I recall the details, GENZ has the right to gobble GZMO at a premium of 30% over fair market value. However, I think they would be very wary of doing this just as GZMO was taking off, and so I don't view this is a serious problem.

One other downside from GZMO's perspective is that the net operating loss goes to GENZ, and so if they are successful they won't have the normal cushion of no taxes for a few years.

Peter
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