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

To: robert miller who wrote (8312)	5/9/2003 9:24:27 AM
From: Biomaven	Read Replies (3) \| Respond to of 52153

GENZ screws its tracking stock holders for the final time: Genzyme to Swap for Tracking Shares By TSC Staff 05/09/2003 07:43 AM EDT Genzyme Corp. (GENZ:Nasdaq - news - commentary - research - analysis) will bring in the tracking stocks it used to raise money for its cancer and biosurgery divisions, saying they've outlived their usefulness in a stalled market for new equity. Genzyme will exchange shares in itself for shares of Genzyme Molecular Oncology (GZMO:Nasdaq - news - commentary - research - analysis) and Genzyme Biosursurgery (GZBX:Nasdaq - news - commentary - research - analysis) at a roughly 30% premium to recent market prices. The exchange ratio implies valuations that are well below both stocks' 52-week highs, however. [Ad] "While tracking stocks have enabled us to create tremendous value in the past, current financial market conditions have reduced their ability to raise needed capital," the parent company said in a statement. Genzyme Corp. also reaffirmed 2003 earnings guidance of $1.25 to $1.35 a share, excluding amortization. Genzyme closed Thursday at $39.13. Under the exchange formula, Genzyme Biosurgery shareholders get 0.04914 of a Genzyme Corp. share, or about $1.92 a share based on Thursday's close. The biosurgery shares closed Thursday at $2.51 and its 52-week high is $5.97. Genzyme Molecular Oncology shareholders get 0.05653 of a Genzyme Corp. share, or about $2.21 a share. Oncology shares closed Thursday at $2.09 and its 52-week high is $4.53. The price for GZBX is actually a sharp discount on yesterday's close. Peter