Rick,
I would guess with the 5000 gene goal that R&D will be stepping up in the next 2-3 years. I put them at 3-3.5 yrs cash conservatively. I think this should get them to a spot where they can fill the coffers again (Hopefully, otherwise a lot of other companies are in big trouble)
I like the CFO...conservative. Her comments regarding the INCY deal were something like: the collaboration is new, we expect big things in the next 6 months, but I'm not modeling it in until we can get a handle on how "big" we should expect. I think she balances Sands well. Sands is the visionary IMO (reminds me of Levin), and I think he'll spend the $$ if he thinks the projected return is there.
<Guess that's the way we're supposed to like it>>
Yeah, not much choice, huh? I'm not placing too much emphasis on it, but the INCY salesforce may be able to deliver some excess cash/deals here and there.
I like the current state of the deals not really for the cash it generates (although undisclosed, it's nice) but for the validation of the IP. I'm not an expert and do not pretend to think that because IMNX took a license, the legal issues are a non-event. But I also think that if IMNX, a company that has been sniffing around the genome for a long time, says that LEXG's patents are good enough for IMNX to come to the table, it provides some support for the patent portfolio. However, the uncertainty is the reason I own both!!
The crux is that DGEN says they are not using any of the LEXG technology. Although they have also not said, to my knowledge, what they are using...
<<Mandatory Disclaimer>>
I wouldn't want my thoughts to upset the delicate trading balance of either DGEN or LEXG : )
JF |
