Cell Genesys Escalates the Cancer War
Brett Pope
May 17 2000
By reporting positive results with its GVAX cancer vaccine in animal
studies, Cell Genesys [CEGE] has flexed its muscle in the cancer
research arena. We believe the value of the company?s research
programs, combined with its large cash position and 12 percent
equity ownership of Abgenix [ABGX], makes Cell Genesys a good
long-term investment.
The study showed an 80 percent tumor-free survival rate for
animals receiving the GVAX cancer vaccine following bone marrow
transplantation. For those receiving only the vaccine, 40 percent
survived, and among those receiving no treatment, none survived.
Currently, patients with acute leukemia have high relapse rates
after receiving bone marrow transplants. The GVAX cancer vaccine
appears to stimulate a more effective antitumor immune response
to help prevent relapse.
Cell Genesys is expected to begin human clinical trials shortly for
leukemia treatment. The company?s GVAX cancer vaccine is already
in phase II trials for prostate cancer, phase I/II trials for lung
cancer, and it is being evaluated for pancreatic cancer. The basic
technology behind the GVAX vaccine appears to be applicable to
many types of cancer. If the vaccine receives FDA approval for just
one of these types, we believe it would justify the company?s
current market capitalization of $658m. As a bonus for investors,
the company has $250m in cash, and a 12 percent stake in
Abgenix that is currently valued at about $476m.ÿ
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