Hi Gus, Anergen should start to attract more institutional ownership with Barry Sherman at the helm. As you may know, Mr. Sherman came over from Genentech to head Anergen.
According to the SEC-13G/A document on file, Warburg, Pincus Ventures L.P. purchased an additional 600,000 shares on August 9, 1996, raising their equity ownership in Anergen to just under 30% of all shares outstanding. This is a positive sign for the company as an institutional investor has raised its confidence in Anergen's management. I expect other institutions to follow in the near future, despite the lack of commercialization prospects in the near term.
In my humble opinion, Anergen shares under $5 present a good long-term buying opportunity as any substantial news of progression of the Company's proprietary ANERVA and ANERGI compounds through Phase II trials will most likely come at significantly higher valuations. I suspect that institutions will begin to see value in Anergen's shares based on multiples other biotechnology fetch for their shares and the strength of Anergen's management program which will (or may) become more evident in the future.
Discussion of management's credibility and potential are based on Mr. Sherman's accomplishments during his tenure at Genentech. In no way can this guarantee the same success at Anergen. However, some share my notion that placing a bet on Mr. Sherman for a year or two is more prudent than placing the same bet on anything in Las Vegas.
To that end, as a current Anergen shareholder, I added to my position yesterday, and plan on purchasing additional shares over the next twelve months - focusing on obtaining a favorable long-term cost basis.
Besides, if I have a question to ask management, Anergen's offices are only a half hour drive from my office.
Best regards,
Rick |
