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Biotech / Medical : Cell Genesys (CEGE) -- Ignore unavailable to you. Want to Upgrade?

To: John Liu who wrote (901)	5/6/2000 8:44:00 AM
From: david james	Respond to of 1298

Its really tough to compare across biotechs since each one has its own unique pipeline, but one company to look at is Vical (VICL). They have a market cap of $400 mill. Vical Inc. is developing gene-based pharmaceutical products for human therapy. The Company's patented naked DNA gene delivery technology and proprietary lipids are designed to deliver selected genes into some cells in the body. These genes have been shown in clinical trials to cause the cells to produce desired proteins that may prevent or treat infectious and malignant diseases and other disorders. Vical is developing cancer product candidates internally while developing vaccines for infectious diseases and gene-based delivery of therapeutic proteins for other disorders primarily in collaboration with corporate partners.

To: John Liu who wrote (901)	5/6/2000 7:05:00 PM
From: david james	Respond to of 1298

Technology valuation estimate of $400 million moneycentral.msn.com Value play: Naqvi says Cell Genesys (CEGE, news, msgs) is a value play, based on its total current assets of $734 million, which includes a large amount of cash and a 12% ownership stake in Abgenix. This is nearly equal to Cell Genesys' market cap of $785.7 million as of March 21. Naqvi calculates the value of Cell Genesys' own technology at $400 million, meaning the stock is trading more than 40% below its current value. bull-market.com That said, let's focus on two stocks I feel are worth watching in the near term because of their relatively low valuations, cutting-edge technology, and deep pipelines. The companies below may not be secrets, but they are anything but household names either. Cell Genesys (CEGE, $46) Cell Genesys is an interesting outfit. A few short weeks ago, their market cap was only half of their asset value. Yes, their share price was 50% less than the combined total of their cash on hand and investments. A large portion of their assets was in the form of Abgenix (ABGX) stock, as Cell Genesys owned 19% of the hot young company. Well, if the Street had any doubts as to the legitimacy of those holdings, they must have been erased when Abgenix -- who just recently announced a 2 for 1 stock split - soared m ore than 70 points in the days following their secondary offering. Their strong showing after a potential negative event sent Cell Genesys soaring to new highs, but they still remain a bargain on paper. Cell Genesys contributed to Abgenix's stock offering with a portion of their shares, but they still retain over 12% ownership. Cell Genesys currently owns 220 patents, plus they have well over 300 patents pending. Their pre-clinical programs include potential gene therapies for cancer, cardiovascular disorders, hemophilia and Parkinson's disease. At this time, they have a GVAX cancer vaccine in Phase II testing and another in Phase I/II. While most biotechs would love to have two years cash on hand, Cell Genesys has close to ten. Their strong financial position will allow them to be more aggressive with their research, and it also provides ammunition should they choose to license late stage technology. There are 32 million shares outstanding and 23 million in their float. As it stands today, their equity in Abgenix and cash position adds up to $1.1 billion, leaving about $13 per share for their technology contribution. On paper, Cell Genesys continues to be a bargain when compared to its competitors. The Street continues to discount their patent property, assets, and certainly not least, their technology. It is possible that analysts are still wondering how Cell Genesys could have agreed to sellout for $10 per share last year before backing out. Management paid a $15 million fee for their troubles, and possibly lost some credibility. At this time, only one analyst covers Cell Genesys, and they recently reiterated their Buy recommendation. Cell Genesys is optionable.