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

To: jeffbas who wrote (833)	3/15/2000 11:01:00 PM
From: david james	Respond to of 52153

Thanks Jeffrey, according to the CEO of CEGE, most of the taxes on the gain they have from the sale of the $250 mill in ABGX stock will be offset by NOLs they have accrued. On Saturday the CEO said that at the current low rate they burn cash, this was enough to last 135 years. It is tough to value the 2.4 mill shares of ABGX. ABGX themselves now has $550 mill in cash and of course a rather interesting mouse. CEGE will make a profit this year, and they own the patents on what is probably the delivery system of choice in gene therapy research. If you valued the CEGE technology and cancer vaccines at say $15/share and then consider their $8/share in cash, that leaves 2.4 mill ABGX shares valued at around $7 or about $240mill or $100. That is a pretty good discount from the current price of $275. My guess is that as with the internets, the next phase of the biotech ralley will be marked by buyouts and mergers. Some of these companies have a lot of cash.