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Biotech / Medical : Transkaryotic(tktx)
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To: keokalani'nui who wrote (115)1/6/2003 11:00:42 PM
From: Londo   of 122
 
I also meant I did not know whose hand is on the conversion trigger. Do you?

It's actually the SEC. When they declare TKTX's share registration active (http://www.sec.gov/Archives/edgar/data/885259/000091205702030291/a2085236zs-3a.htm), CEGE will be entitled to a number of TKTX shares that will have a market value of $15M. The 366k number you see on the link is not 'real' per se.

In retrospect, this was EITHER a dumb move by TKTX or smart move by CEGE. Basically I could just imagine the negotiations..

CEGE: "We'll sell it for $24M in cash".
TKTX: "$24M in cash? How about half cash and half stock? Our burn rate's kind of high."
CEGE: "Woah, your stock is totally over-valued. But if you can guaranteed the price of your shares, we'll do half-cash, half-stock."
TKTX: "OK, how about $11M cash, $15M stock? The extra $2M is a sweetner."
CEGE: "OK, but you have to guarantee the number of shares when the registration is effective."
TKTX: "(thinking that their stock price is rich, and they could afford it) Sure, sounds good!"

I think we can count on at least one other lawsuit by genezyme

I doubt it. GENZ got their clocks roasted when they tried TKTX on the Fabry treatment. The next big legal thing I figure will be TKTX taking an appeal to the FDA in terms of their orphan drug approval of Fabryzyme..

It's worth a quarter position at 7 bucks a share, but not much more.
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