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Biotech / Medical : GLGC Gene Logic -- Ignore unavailable to you. Want to Upgrade?

To: Mike McFarland who wrote (190)	4/22/2005 11:12:28 AM
From: Mike McFarland	Read Replies (1) \| Respond to of 360

Just finished listening to the first quarter call, which was pretty good--however no fresh meat for the handful of folks here on SI that follow individual molecules. GLGC has SEVEN CANDIDATES FROM TWO PARTNERS in their drug repositioning service--and they expect to have 20 from 4 later this year. So that is good--they only spent 2.5M in the quarter on that segment of their business, so they seem not to be burning through tons of cash there to capture whatever royalties and milestone payments that they sign. A few upfront payments of a few million however would sure be nice, heh. Overall, they LOST 4.1M, HAVE 97.8M CASH in the bank. I think I guessed on the Yahoo board a few weeks ago that it would be 3-7M, which of course I just pulled out of my hat. Off to Wall Street for me, junior analyst Mike McFarland <g>. One segment of their business is the preclinical CRO. I heard "capacity contraints" as an excuse for the losses there. Brinkerhoff was hired to run this part of their business. IMHO, they would do well to sell this off. The best part of the business is their genomics/Tox portion, and it looks like that is doing no harm at all, around breakeven, and I got the sense that they may stabilize that and turn a profit consistently, perhaps starting this year. They signed NINE NEW GENOMICS customers in the quarter, so that seems pretty dang good. Overall, this was a very good call considerting that the folks at glgc seem mainly to want to dot their i's and cross their t's these days. Which is fine. They can sexy things up later when the time is right.