Cell Genesys Chairman & CEO: Diverse Revenue Bases and Products Key to Success
By:
Lisa Hayden
Sector:
Biotechnology
Roseville, CA - March 13, 2000 - Dr. Stephen Sherwin, Chairman and CEO of Cell Genesys
(NASDAQ:CEGE), told attendees on March 11th at InformedInvestors.com's 8th Bay Area Biotechnology
Stocks Forum in Santa Clara, CA, that careful management of unique, diversified assets and product lines
has been key to his company's financial success.
"I think we're pretty unusual given the kinds of assets in the business," Dr. Sherwin said, answering a
question about shareholder value. He highlighted company assets, including "the core business -- our
products and technology. We have our holdings in Abgenix (NASDAQ: ABGX). We have the gene
activation licensing program... It not only gives you different ways to win, but it gives you a floor."
Cell Genesys, of Foster City, CA, is working to develop and commercialize gene therapies to treat major,
life-threatening diseases including cancer and AIDS. The company is conducting Phase I/II human clinical
trials for its GVAX(TM) cancer vaccines in prostate cancer and lung cancer, and the company's AIDS gene
therapy is in Phase II human clinical testing. Preclinical stage programs include gene therapy for cancer,
hemophilia, Parkinson's disease, and cardiovascular disorders. The company has more than 220 issued
patents and over 330 pending.
Dr. Sherwin said that the GVAX vaccine has shown good results in clinical tests. He said the vaccine
contains genetically modified cells that help tumor cells generate an immune response. "That immune
response, in effect, becomes a way of treating cancer. So this is a treatment vaccine not a way of
preventing cancer."
Hemophilia treatments also present opportunities for Cell Genesys, and Dr. Sherwin noted that initial
preclinical data have been positive and "are behind our desire to move this program into clinical trials. And
we know that this is a competitive area but we're pretty pleased with the competitive advantages that we
have and the fact that we have two gene delivery systems to apply, over 90 patent filings pertaining to
these systems, and available manufacturing processes that are already in place." Cell Genesys hopes to
initiate clinical trials in 2001.
Cell Genesys also has a licensing program for gene activation technology. Aventis Pharmaceuticals
(NYSE:AVE) recently licensed the company's technology for the development of gene-activated
erythropoietin (EPO) and a second undisclosed protein.
Cell Genesys has resources of over $1 billion in financial assets, including $250 million in cash and the
value of its 12% ownership of former subsidiary Abgenix. Dr. Sherwin declared that, "in my almost 18 years
in biotechnology, I have never encountered these circumstances and I can assure you we intend to make
the most of these opportunities and create as much shareholder value as possible."
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