Cell Genesys (CEGE) Message Board

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Biotech / Medical : Cell Genesys (CEGE)

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To: tuck who wrote (844)	4/3/2000 4:40:00 PM
From: david james	Read Replies (1) of 1298

I just talked to Investor Relations. They were very helpful. Earnings will be out the week of April 24th. The sale of the ABGX shares will count as a gain. By my calculation, this will give them a gain of $200 mill minus their cost basis which can't be more than $20 mill or so. So I expect a gain in the range of $180 mill. They have accrued NOLs (net operating losses) from previous years in the range of $200 mill so there won't be much in taxes on those gains. They should have revenues above $12 mill (my guess for the quarter) from patents etc. That should be about their burn rate, however, they are hiring a bunch of people and expect the revenues and the burn rate to go up. They are still receiving income from Japanese Tobacco. A $180 mill gain is close to $6/share which should give them a net gain over the last 12 months of over $5/share - which should give them a current P/E of around 4 (yes, a biotech with a P/E around 4). They will be collecting interest on that $250 mill but IR could not comment on the rate or when they started collecting interest. 6% interest would give them $15 mill a year (an additional gain of 50 cents/share). However, they are looking at several late stage drugs that they might acquire that would be profitable in the short term. The next big conference will be in May which should discuss results for both pancreatic and prostate cancer. Hope this helps

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