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Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (274)	7/13/1999 1:07:00 AM
From: scaram(o)uche	Read Replies (1) \| Respond to of 52153

Ralf: Strongly agree with everything you said. However, technologies are cheap right now, and $150 million can buy opportunity. I feel that they'd really have to muck up to turn my 40 cents into something worth 40 cents. There is no question..... I'd prefer to find a company that will turn my 40 cents into $4 on the basis of a growing, vibrant business. However, we have an idiom..... don't look a gift horse in the mouth..... it means don't turn away a gift on the basis of criteria you'd use if paying. $150 million, summer of '99? That's license to develop one heck of a business within five years. Downside?...... they could pull "a Chiron". We'll see. Good comments, very much appreciated. Rick

To: Spekulatius who wrote (274)	7/13/1999 1:14:00 AM
From: jeffbas	Respond to of 52153

Slight correction: Deknatel/Seprafilm PLUS $150 MILLION CASH (plus small biotherapeutic R&D operation) is now valued at $65 million. I find that crazy. By the way Collier said with a straight face on the Roadshow that the surgical business was more valuable than when they bought it. I think he was weasel-wording it -- that the company was worth more WITHOUT reference to the $250 million they paid. As I have said before it ought to be worth $100 million. Therefore, I look at this as 25 cent dollars not 40 cent dollars (65/150 cash + 100 business) -- and Seprafilm probably has some value as well. What I do not understand is why GENZ did not sell those businesses, take the one time earnings hit, and put the $150 million cash to better uses. Anyone have any idea? As I noted on the GZSP thread today, institutional sales of GZSP they either did not want or could not hold by their charters was at least 1/2 of today's trading volume and the stock was stable.