Hi Tom, I'll take a look. Thanks. Let me ask you and Kerry your thoughts on a stock I'm looking at:
Cell Genesys -- CEGE (not covered in the regular Value Line):
The company has about $23 in cash/short-term equivalents/Abgenix common stock.
Here is an interesting link:
individualinvestor.com
My initial thoughts are positive for the following factors:
1) the short-term securities are significantly greater than CEGEs current stock price.
2) the company has significant assets in patents and has announced positive news releases.
3) the company should be able to achieve in any economic environment (due to its focus on cancer research) along with a pretty firm bottom due to the excellent balance sheet.
4) significant upside if major progress is made on their product line (which has been done to a certain degree already).
5) although the company is not profitable on an operational
basis, the company has a net loss of about $15 million (according to my brief analysis) per year, which is minor compared to the upside and balance sheet.
Earnings Info:
cellgenesys.com
CELL GENESYS REPORTS FOURTH QUARTER AND 2000 RESULTS
Ends Year With $260 Million in Cash
FOSTER CITY, Calif., January 22, 2001-Cell Genesys, Inc. (Nasdaq: CEGE) reported net income for the quarter ended December 31, 2000 of $38.9 million or $1.05 per fully diluted share, and net income for the year then ended of $168.2 million, or $4.55 per fully diluted share. This compares with a net loss of $14.1 million and a net loss of $12.4 million in the same quarter and full year of 1999, respectively. Cell Genesys ended 2000 with approximately $260 million in cash, cash equivalents and short-term investments, up 420 percent from $50 million in the comparable period of 1999. The significant increase in cash and income for the quarter and year can be attributed to the sale of a portion of the company's holdings in Abgenix, Inc., a former subsidiary in which Cell Genesys retains approximately a 10.5 percent interest.
Revenues for the fourth quarter and year ended December 31, 2000 were $9.5 million and $24.2 million, respectively, compared with $10.1 million and $33.6 million in the comparable periods of 1999. Revenues for 2000 were derived primarily from the company's GVAX® collaboration and payments received in connection with the company's gene activation technology licensing program. Revenues for 1999 included a one-time payment of $8.0 million received in connection with a former collaboration agreement.
Research and development costs were $8.9 million and $30.5 million in the fourth quarter and year ended December 31, 2000, respectively, compared with $6.8 million and $24.5 million for the comparable periods of 1999. The increase can be attributed in part to the company's expanding clinical trials for GVAX® cancer vaccines.
"2000 was a year of significant accomplishments for Cell Genesys which included raising approximately $250 million from the sale of a portion of our equity interest in Abgenix and reporting significant progress in our lead product development programs including encouraging clinical data from multiple GVAX® cancer vaccine trials," stated Stephen A. Sherwin, M.D., chairman and chief executive officer of Cell Genesys. "Cell Genesys is in an exceptionally strong financial position not only to aggressively pursue multiple product opportunities within our own portfolio but also to consider the acquisition of products and technologies to advance our business and create further shareholder value. In recent weeks, the company has made some key investments in the future of Cell Genesys by acquiring the gene therapy operating assets of Chiron Corporation and launching a new subsidiary, Ceregene, through the acquisition of Neurologic Gene Therapeutics, a private company developing gene therapy treatments for Alzheimer's and Parkinson's disease."
Fourth Quarter 2000 and Other Recent Highlights:
Reported that the company's GVAX® prostate cancer vaccine demonstrated antitumor activity in an initial Phase II trial in patients with advanced metastatic prostate cancer who have failed hormone therapy. Post treatment follow-up of the patients with positive bone scans prior to treatment revealed a trend toward prolonged progression free survival as measured by bone scan in patients who received the higher dose of vaccine as compared to patients who received the lower dose (median time to progression of 140 days v. 85 days). Treatment with GVAX® prostate cancer vaccine was safe and well tolerated and compares favorably with the standard chemotherapy for these patients.
Raised an additional approximately $50 million by selling 750,000 shares of Abgenix common stock at a price of $70 per share as part of an Abgenix private placement. Cell Genesys retains approximately 9 million shares of Abgenix common stock or approximately 10.5 percent ownership.
Began construction of a 41,000 square foot multi-product GMP (Good Manufacturing Practices) manufacturing facility in Hayward, Calif. which will be used to manufacture the company's GVAX® cancer vaccines as well as other gene therapy products including those for hemophilia and cancer. The facility will have the capacity to manufacture products for both advanced Phase III clinical trials and market launch.
Acquired the principal operating assets of Chiron Corporation's gene therapy business, including a fully equipped and staffed GMP manufacturing facility. The approximately 48,000 square foot leased facility is located in San Diego, Calif. and is staffed with approximately 25 highly skilled employees with expertise in the manufacturing of gene therapy products.
Launched a new subsidiary, Ceregene, Inc., which will focus on gene therapies for central nervous system (CNS) disorders such as Alzheimer's disease and Parkinson's disease. Ceregene was formed through the acquisition of Neurologic Gene Therapeutics, a private San Diego-based start-up company.
Cell Genesys is focused on the development and commercialization of cancer vaccines and gene therapies to treat major, life-threatening diseases. The company is conducting multicenter clinical trials for its GVAX® prostate cancer and lung cancer vaccines and expects to initiate additional GVAX® vaccine trials in these two cancers as well as pancreatic cancer, myeloma, and leukemia during 2001. Preclinical stage programs include gene therapies for cancer, hemophilia and cardiovascular disorders. Cell Genesys' majority-owned subsidiary, Ceregene, is focused on gene therapies for central nervous system disorders, and Cell Genesys' assets outside gene therapy include its approximately 10.5 percent ownership of Abgenix, Inc. and the company's licensing program in gene activation technology. For additional information, please visit the company's web site at www.cellgenesys.com.
An interesting stock nevertheless!
Thanks Tom for your info. I'll take a look. ad |
