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Biotech / Medical : Biotechnology Value Fund, L.P. -- Ignore unavailable to you. Want to Upgrade?

To: Biomaven who wrote (976)	10/2/1999 6:19:00 PM
From: LLCF	Read Replies (1) \| Respond to of 4974

<that the net operating loss goes to GENZ, and so if they are successful they won't have the normal cushion of no taxes for a few years.> I thought part of the reason for these tracking stocks was to get the loss off poppa's balance sheet?? I must be mistaken. DAK

To: Biomaven who wrote (976)	10/4/1999 11:36:00 AM
From: biowa	Read Replies (1) \| Respond to of 4974

Peter, <<Well these tracking entities are indeed weird beasts. As I recall the details, GENZ has the right to gobble GZMO at a premium of 30% over fair market value. However, I think they would be very wary of doing this just as GZMO was taking off>> I was just thinking it limits them from going 10x or over. <<One other downside from GZMO's perspective is that the net operating loss goes to GENZ, and so if they are successful they won't have the normal cushion of no taxes for a few years.>> Good point. Also suggests that when the NOL stream diminishes so does GENZ's incentive to hold them at arm's length. But once again, I'm not arguing an imminent GENZ munch(?). biowa