220 patents,335 gene therapy apps,$35/sh cash&ABGX,a STEAL at $13/sh
Biotech Cell Genesys Patents Gene Therapy Success
By Brett Pope streetadvisor.com
Mar 2 2000
The good news just keeps on coming for Cell Genesys: the company has received two new US patents relating to its proprietary adeno-associated viral (AAV) gene delivery technology. The issue of the new patents comes on the heels of the company?s recent announcement of further progress for its GVAXã lung cancer vaccine. We believe the current frenzy in biotech stocks will propel Cell Genesys shares even higher as the market recognizes the value of the company?s research programs and the $35 per share value of its cash and Abgenix (ABGX: Nasdaq) equity stake.
[Hence,CEGE is valued at $48 - 35 = $13/sh, an incredible steal in biotech].
We feel Cell Genesys has the tools necessary for continued success. It now holds 220 patents and has 335 pending applications related to gene therapy. It also has promising cancer vaccines in phase I/II and phase II clinical trials, a great deal of intellectual property with its large patent portfolio, a licensing program for its gene activation technology, and -- most important -- more than $250m in cash. We believe this cash position will allow Cell Genesys to develop its research programs more rapidly, as well as opening up acquisition opportunities.
The company?s new patents are related to the AAV vector. Vectors, or gene delivery systems, are the vehicles by which therapeutic genes are introduced into target cells or tissues. Cell Genesys has four vector systems available: AAV, lentiviral, adenoviral, and retroviral. The choice of vector depends on the nature of the disease and size of the gene.
The company has seen promising results from its gene delivery system in preclinical studies for both hemophilia and Parkinson?s disease. An article in today?s New York Times nytimes.com 030200hth-gene-therapy.html talks about the success of similar research done for hemophilia using gene therapy. The research is significant because it represents the first real evidence that gene therapy may cure certain diseases. |
