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Biotech / Medical : Cell Genesys (CEGE)

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To: Icebrg who wrote (1129)5/20/2001 8:47:57 PM
From: Madharry  Read Replies (1) of 1298
 
I think that your methodology is a good starting point but we have to adjust for where these different companies are in the development cycle and how they will have to access funds to proceed with their development. It seems to me that CEGE has lot of options. there is no urgency for them to liquidate their abgx stake at all. they only need to liquidate enough to offset their r&D costs. then it will be tax free. They could use their cash to purchase biotech companies in their field that are cash hungry. IMHO CEGE should be at a premium to comparable companies because of their financial resources. i have seen too many companies with promising technologies either go belly up or be acquired for a very low price because they lacked the resources to stay the course independently.
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