Total stockholders' equity nine months ago: $125m.
And now, at the end of the quarter: $76m. True, that
sorta takes your breath away.
Here is some of what any newbies need to know from the latest
quarterly report...just so you know what you're getting into.
I have added some emphasis, bolded.
"Our Drug Repositioning Division resulted from our
acquisition of certain technology from Millennium
Pharmaceuticals, Inc. (“Millennium”) in 2004. We have
invested, and continue to invest, significant amounts in the
development of the Drug Repositioning technologies and of the
Drug Repositioning Division.
We have established partnerships to reposition drug
candidates with several pharmaceutical and biotechnology
customers. Under these agreements, we do not typically derive
up-front revenue. Generally, a partner agrees to make
available a stated number of failed, stalled or deprioritized
drug candidates as to which we will, at our expense, conduct
the initial evaluation using our integrated multi-technology
platform. We will inform our partner of any possible new
indications we identify. In some instances, our partner has
the option to elect to have us conduct mutually agreed upon
animal model validation studies based on our hypothesis,
which may be partially or entirely at our expense. Validated
drug candidates would then be returned to a partner’s
pipeline at its sole election and we could receive
milestone payments if a drug candidate is returned to the
partner’s development pipeline and royalties and/or milestone
payments based on sales if the drug candidate begins
commercial sales. If a partner declined a drug candidate
for an indication we had found, we could in some cases
acquire the rights to develop the drug candidate for the
particular indication. We have acquired one such drug
candidate, but have not established a development plan for
that candidate. Under the terms of another agreement, we may
become equal owners with our partner of drug candidates for
which we discover potential new therapeutic utility and we
would jointly decide how to proceed with the development,
commercialization and funding of such candidate.
Revenue from our Drug Repositioning Division has not been
significant to date and we do not expect to receive
significant revenue under any of our drug repositioning
agreements in 2006 or 2007."
genelogic.com
Eli Lilly, Organon, Roche, Pfizer, Millennium, and
an "undisclosed partner"
I've dabbled with Gene Logic in the past, but have never
owned more than a few thousand shares. I have a medium-sized
position in this right now (currently down 8%).
I think this qualifies as high risk, high reward.
I also qualifies as being a cheap stock, with a marketcap
about equal to the cash they have in the bank. Ready made
(risky!) business, selling for free. |
