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Biotech / Medical : GUMM - Eliminate the Common Cold -- Ignore unavailable to you. Want to Upgrade?

To: Mad2 who wrote (3998)	11/17/2001 8:24:19 PM
From: Mike M	Respond to of 5582

Mad I can think of two issues off the top without even referring back to your post. You indicated that the remaining $11M was to be paid in four years when in fact it is four payments over two years. You also indicated that they added $17M to the balance sheet when in fact the net profit was $17M. They actually added over $26M to the balance sheet. The sale was for $25M and they also sold 200K treasury shares to Wrigley. We can speculate how much Zicam they will sell the next two cold seasons until the cows come home but that's all it is. Not sharing the revenue with Zensano means much of the remaining price tag could be derived from Zicam sales. If that is the case, it leaves us with about $20M in cash over the $3M they had before the sale. Even if they bought a couple hundred thousand of their shares back...still leaves them with around $20... I don't care to speculate on the valuation of the nicotine IP but it is oversimplification to try to deduce the total value of Geltech based on what GUMM paid Zensano. Until it becomes clear what agreements were reached on other possible uses of the gel matrix we don't know who gave up what. Those who predicted that the JV wasn't going anywhere can tip their hats. Too bad for GUMM but I also would have sold the gum manufacturing facility given the intransigence of their partners (particularly P&G and SWMAY). You play the hand your dealt.