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Biotech / Medical : GENZYME - THE KING OF THE BIOTECHS

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To: Harold Engstrom who wrote (271)5/26/1998 11:43:00 PM
From: Spekulatius  Read Replies (1) of 410
 
I have held Genz for a couple of month 18 month ago and studied it in detail. I like there approach to niche solutions with less competition like the Ceredase but what I don't like is that they issue a lot of shares. The No.of shares has grown somewhat like 80% since 92,while the revenue has less than tripled.If we look at the rev. for 1 share it basically has moved from 4$ in 92 to a bit less than 8$ in 98. Well that's solid but not outstanding. Still the earnings a driven by Ceredase and they need to develop a second Cash Cow to sustain growth. I don't see anything coming for the next two years. Thus I think,this is more a value investment which may yield decent returns with less risk than other Biotechs but also less potential for outstanding returns.
These are the reasons why the share price is comparatively low
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