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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium -- Ignore unavailable to you. Want to Upgrade?

To: marquis103 who wrote (80911)	3/1/2000 2:39:00 PM
From: judge	Respond to of 108040

CEGE read this 250 million in cash and 700 million in abgx stock.. adlt just checked their website.. they make lightbulbs. got burnt Cell Genesys Receives Additional $25 Million From Exercise of Over-Allotment Option in Abgenix Stock Offering Cash Position Now Approximately $250 Million FOSTER CITY, Calif., March 1 /PRNewswire/ -- Cell Genesys, Inc. (Nasdaq: CEGE - news) today announced that the company has received net proceeds of approximately $25 million in connection with the exercise of an over-allotment option by the underwriters of the February 10, 2000 secondary stock offering by Abgenix, Inc. (Nasdaq: ABGX - news). The exercise of the over-allotment option resulted in the sale of an additional 450,000 shares of Abgenix stock at a price of $210 per share, of which 126,000 were contributed by Cell Genesys. This brings the total proceeds to Cell Genesys from the Abgenix stock offering to approximately $194 million. Including these funds, Cell Genesys' cash and short term investments now exceed $250 million, not including its remaining interest in Abgenix stock. Cell Genesys retains 2,426,034 shares, or approximately 12 percent ownership of Abgenix stock, which at the closing price on February 29, 2000 had a market value of approximately $781 million. ``We are pleased to have substantially increased our cash position without issuing a single new share of Cell Genesys stock. At the same time, we continue to maintain excellent financial management with the goal of increasing shareholder value as we aggressively drive our products to the marketplace,' stated Stephen A. Sherwin, M.D., chairman and chief executive officer of Cell Genesys. ``Our extensive financial resources will enable us to significantly increase the momentum in our product development programs by more aggressively executing on our ongoing programs in cancer and hemophilia as well as pursuing the potential acquisition of a late stage product candidate in the cancer area.' Cell Genesys has a diverse product pipeline with ongoing programs in cancer, hemophilia and other serious diseases. The company's lead clinical program is a treatment vaccine for cancer called GVAX© cancer vaccine, which is currently being tested in multicenter Phase II clinical trials for prostate cancer and a Phase I/II clinical trial for lung cancer. Preliminary encouraging results, including objective measures of antitumor activity, have been observed in both the prostate cancer and lung cancer GVAX© clinical trials and have led the company to initiate the multicenter trials which are currently under way. GVAX© cancer vaccines for prostate and lung cancers are being developed through a worldwide collaboration with the pharmaceutical division of Japan Tobacco Inc. (JT). Cell Genesys currently retains commercial rights to other potential cancer applications of GVAX© cancer vaccine. Cell Genesys also has a deep pipeline with respect to gene therapy programs in hemophilia, cancer, cardiovascular disorders and Parkinson's disease. Proof of principle has been demonstrated in preclinical studies for each of these four programs, and Cell Genesys' strong financial position now enables the company to pursue certain of these programs, most notably hemophilia, more aggressively. With respect to hemophilia, Cell Genesys plans to take advantage of two different gene delivery systems, more than 90 patent filings pertaining to these two technologies, enhanced manufacturing capabilities as well as the substantial increase in its financial resources to pursue this program. Cell Genesys possesses the largest patent estate in gene therapy including more than 220 issued or granted patents and over 335 pending patent applications. Cell Genesys is focused on the development and commercialization