Paul --
I know that you have been discussing biotechs recently. I bought some "CEGE" this morning. The company has made some good progress with its cancer treatments and has a significant amount of Abgenix stock & cash.
The burn rate seems reasonable. But as always, these biotechs live & die based upon their product development. If CEGE's product line, sometimes viewed as controversial -- gene therapy --, is FDA approved, then this could really be a good value at today's price.
CJ@nobiotecheducation.com
First Quarter 2002 and Other Recent Highlights:
* Reported preclinical data at the American Association for Cancer Research (AACR) annual meeting that CG8840, an oncolytic virus therapy engineered to target and destroy bladder cancer cells, demonstrated significant antitumor activity in a mouse model when used alone and in combination with taxotere (docetaxel), a chemotherapeutic agent commonly used in the treatment of bladder cancer.
* Announced that the company leased a 35,000 square-foot facility in Memphis, TN for manufacturing the company's patient-specific GVAX(R) lung cancer vaccines for both Phase III clinical trials and potential market launch. Memphis, one of the world's major shipping hubs, was
chosen to facilitate the efficient transport and distribution of patient vaccines to treatment centers across the United States.
* Announced that the company had terminated its research collaboration and license agreement with GPC Biotech AG for p27/p16 gene therapy for cancer and cardiovascular disease. The decision to discontinue the agreement reflects Cell Genesys' decision to prioritize its other cancer gene therapy programs based on the results of ongoing preclinical studies as well as a determination that p27/p16 gene therapy for cardiovascular disorders such as restenosis is a less compelling business opportunity in light of the success of other new treatment strategies for restenosis.
Other issues:
1) The company has about 35 million shares. The Abgenix and cash provide some cushion to the stock. I haven't been to their website for sometime, but they did have a pretty good audio presentation archive (including rudimentary discussions of products on CNBC with Bill G.).
Condensed Consolidated Balance Sheets (in thousands)
March 31, December 31,
2002 2001
Cash, cash equivalents and short-term investments
$230,256 $258,649
Investment in Abgenix common stock 169,144 301,217
Other current assets 5,449 10,603
Property and equipment, net 54,762 43,217
Other assets 1,476 1,624
Total assets $461,087 $615,310
Current liabilities $87,330 $149,690
Long-term obligations 57,000 60,000
Minority interest in equity of subsidiary (173) 96
Series B preferred stock 17,970 17,970
Stockholders' equity 298,960 387,554
Total liabilities and stockholders' equity $461,087 $615,310 |
