From gathered information from SEC filings, my opinion is that Genelabs success hinges on several things:
1. If the FDA removes DHEA from the market as a food supplement, their exclusive worldwide rights under U.S. patents granted to
Stanford University for the use of GL701(DHEA)to treat SYSTEMIC LUPUS ERYTHEMATOSUS (SLE), would carry more weight.
2. If there is evidence of biological terrorism in the world and enough people know about the DARPA project, which "applies Genelabs' DNA-binding and RNA-binding technologies to the discovery of drugs that can be used as countermeasures to agents of biological warfare."
3. If they find a way to exploit "novel immunomodulatory genes on human chromosome 5 which may be associated with asthma."
4. If they are granted a Patent for GL331, a topoisomerase II inhibitor, as a potential treatment for multiple drug resistant cancers.
5. If the right things shake out of deals with Taiwan-based affiliate GBL, and discontinued diagnostics business GLD.
6. If they don't use the weasel clause to explain away losses that we may be seeing from companies in the future: "Certifications from Genelabs' software and hardware providers indicate that Genelabs will not be exposed to any material year 2000 costs, but there can be no assurance of this. While third-party assurances and internal testing are useful in assessing year 2000 issues, neither can provide absolute assurance about whether the Company will experience year 2000 problems and/or costs. The Company currently does not have contingency plans to deal with major year 2000 failures."
Until they capitalize on one of their patents, or circumstances favor them, they will still be a $2 company. I like all of the insider buying in the last year, though, so I am holding. |
