Steve: Here's the best I can do to answer your questions.
1) The CRLS 9/97 10Q has a line "License fees and other" which I assume represents (in part) income derived from the DNA Microinjection patent. This number was $175,000 for the qtr. ending 9/97 vs. $105,000 for the qtr. ending 9/96 (the nine month numbers were $612,000 for 1997 and $351,000 for 1996). So, CRLS's license fee income seems to be
growing nicely.
2) The DNA Microinjection patent was awarded to Ohio University in October, 1989 and Chrysalis now has the exclusive commercial license to this patent. I'm not an expert on patent law, but I assume their patent is good for 17 years or through October, 2006. If you want more exact info, I suggest you call the company.
3) To my knowledge, CRLS has not revealed the identity of the company with which they have a "big contract."
4) End-of-year "tax loss" pressure is certainly possible. But at this price, the downside for CRLS seems pretty small.
5) CRLS's CEO was quoted in the WSJ that they've licensed their DNS Microinjection technology to 30 companies. It's my impression that Genzyme Transgenics is purest US stock play in transgenics. PPL Therapeutics, which is based in Scotland, is another company specializing in transgenics. What I like about CRLS is that it stands to benefit no matter which transgenic companies are successful.
If you're interested in investing in CRLS, you should read their SEC filings. Then, you could contribute info to this thread as well as ask questions. To get you started, here's a descriptive excerpt from CRLS's 9/97 10Q.
"The Company (Chrysalis) is an international contract research organization ("CRO") providing a broad portfolio of integrated drug development services primarily to the pharmaceutical and biotechnology industries. This portfolio of drug development services includes preclinical and clinical capabilities that enable the Company to manage a comprehensive drug development program or a client's specific requirements. The Company utilizes its international expertise and experience in preclinical and clinical services to provide a coordinated approach for a client to transition its drug through various preclinical to clinical stages of development thereby minimizing certain delays which typically occur before a new drug is introduced to the market. In addition, the Company is the only CRO that is currently able to use its proprietary transgenic and other related technology to provide services for its clients that require transgenic animal models for the evaluation and development of therapeutic lead compounds for further development and for genomics research in order to determine the function of human genes and identify gene targets implicated in disease. The Company generates substantially all of its revenues from its drug development services and currently provides services for more than 250 clients in 26 countries." |
