Hi Barb,
I know you asked specifically for Giuseppe's opinion, but I'd like to add my $0.02.
I believe that GENZ owns 43% and I think, because GENZ can exert some control over the GZTC board, that GZTC is consolidated on GENZ's balance sheet. Steve could probably address this better than I. GENZ would have an incentive to acquire GZTC if it felt that the company was worth more than the market was paying for it. You wrote about the potential of an acquisition at a "low relative price", which I'll assume means anything under $15.00. I think GZTC is worth significantly more in the next several years for the following reasons:
1. ATIII will be on the market
2. The company will be realizing manufacturing royalties from collaborations
3. GZTC have a profitable CRO that is able to stand alone and grow through acquisitions, in what I believe will be a consolidating industry
4. GZTC will be one or two steps closer to a cancer vaccine
5. And most importantly GZTC will be just several years away from producing, in bulk quantities, Insulin or Human Growth Hormone or something else that is coming off patent. By virtue of transgenic production, GZTC will be the low cost producer in a commodity-like market! That is every company's dream!
And in 3-5 years I think GZTC will be a $30-$40 stock
Given My lofty expectations, I know that if GENZ tendered for the remaining 57% of GZTC at $15.00 tomorrow I would snub my nose at it. I may even snub my nose at a $20.00 offer. That is the key, however. We the shareholders can decide if/where GZTC gets taken out by GENZ. If we deem the offer insufficent then the shareholders could vote the offer down.
Maybe Steve could address the composition of GZTC's board of directors. How many GENZ execs sit on the board?
Anyway, if I didn't address your question Barb I sure did take up a lot of space trying to.
Brian |
