CEGE:
<<Cell Genesys currently owns 220 patents, plus they have well over 300 patents pending. Their pre-clinical programs include potential gene therapies for cancer, cardiovascular disorders, hemophilia and Parkinson's disease. At this time, they have a GVAX cancer vaccine in Phase II
testing and another in Phase I/II. While most biotechs would love to have two years cash on hand, Cell Genesys has close to ten. Their strong financial position will allow them to be more aggressive with their research, and it also provides ammunition should they choose to license
late stage technology.
There are 32 million shares outstanding and 23 million in their float. As
it stands today, their equity in Abgenix and cash position adds up to $1.1
billion, leaving about $13 per share for their technology contribution.
On paper, Cell Genesys continues to be a bargain when compared to its
competitors. The Street continues to discount their patent property,
assets, and certainly not least, their technology. It is possible that
analysts are still wondering how Cell Genesys could have agreed to sellout
for $10 per share last year before backing out. Management paid a $15
million fee for their troubles, and possibly lost some credibility. At
this time, only one analyst covers Cell Genesys, and they recently
reiterated their Buy recommendation. Cell Genesys is optionable.
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