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

To: Mike McFarland who wrote (454)	12/16/1999 2:44:00 PM
From: Biomaven	Respond to of 52153

Mike, The tracking stock issue is complex. Some people won't touch them, but I'm content to hold GZMO. My take is that even though legal title to the assets (particularly from a creditor's viewpoint)is held by the parent, GZMO shareholders will still sink or swim based on the results of GZMO itself. Here's the explanation of the CEGE deal from a GZMO release: In exchange for these assets and the $60.0 million in cash, Genzyme Molecular Oncology will reserve approximately 12.5 million GZMO designated shares for the benefit of Genzyme General. Genzyme General intends to explore the potential to either sell the GZMO designated shares reserved for its benefit to financial or strategic investors with an interest in Genzyme Molecular Oncology or sell the GZMO designated shares in a registered public offering in 2000. If the GZMO designated shares are not otherwise sold for the benefit of Genzyme General, they will be distributed as a dividend to holders of GENZ stock. Hopefully they will be sold in an offering rather than distributed - we've seen that GENZ shareholders basically dump whatever's given to them. GZMO basically got a sweet deal here - $60m in cash plus the CEGE oncology assets for around $60m in GZMO stock at current values. Peter

To: Mike McFarland who wrote (454)	12/16/1999 3:07:00 PM
From: Pseudo Biologist	Read Replies (2) \| Respond to of 52153

Re. CEGE "thing." Since you brought it up, take a look at CEGE's trading today. Over 1 million shares and hitting above the $10 buyout. I guess many are starting to believe that the merger ain't gonna happen. What does it do to GZMO? PB