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

To: Pseudo Biologist who wrote (142)	10/19/1999 4:53:00 PM
From: jeffbas	Respond to of 438

Pseudo, there are also actuaries (my profession) who are excellent managers <ggg>. On your second point, I have specifically talked with the CEO on this, as I could see and evaluate the importance of all the "non-biological" plusses, and had to satisfy myself as to the importance of the potential minus that you mention. I came away totally satisfied from the GENZ/GZMO point of view. It is not the intent to throw GZMO out there and if it fails it fails and if it succeeds GENZ buys it back cheap. Furthermore, they would be subject to shareholder lawsuits if they concealed a material GZMO development in order to pursue a cheap buyout. The real risk is that GZMO makes great progress, announces lots of nice stuff, and the market doesn't care. Then GENZ could buy it back at a 30% premium. But how is this really different than GENZ or anyone else buying another cheap third tier company, like Cell Genesys, except that the premium is fixed? Furthermore, if GENZ were to do that with GZMO, nothing would prevent a competing offer from another buyer at a higher price. In sum, I think this is much ado about nothing that is not already an inherent risk in another third tier company. I am told the GZMO conference call is tomorrow at 4:45 Eastern time at 212-896-6110. I believe a replay will be available through the GENZ website.