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

To: Mike McFarland who wrote (228)	11/20/2006 8:51:40 PM
From: Mike McFarland	Read Replies (1) \| Respond to of 360

Total stockholders' equity nine months ago: $125m. And now, at the end of the quarter: $76m. True, that sorta takes your breath away. Here is some of what any newbies need to know from the latest quarterly report...just so you know what you're getting into. I have added some emphasis, bolded. "Our Drug Repositioning Division resulted from our acquisition of certain technology from Millennium Pharmaceuticals, Inc. (“Millennium”) in 2004. We have invested, and continue to invest, significant amounts in the development of the Drug Repositioning technologies and of the Drug Repositioning Division. We have established partnerships to reposition drug candidates with several pharmaceutical and biotechnology customers. Under these agreements, we do not typically derive up-front revenue. Generally, a partner agrees to make available a stated number of failed, stalled or deprioritized drug candidates as to which we will, at our expense, conduct the initial evaluation using our integrated multi-technology platform. We will inform our partner of any possible new indications we identify. In some instances, our partner has the option to elect to have us conduct mutually agreed upon animal model validation studies based on our hypothesis, which may be partially or entirely at our expense. Validated drug candidates would then be returned to a partner’s pipeline at its sole election and we could receive milestone payments if a drug candidate is returned to the partner’s development pipeline and royalties and/or milestone payments based on sales if the drug candidate begins commercial sales. If a partner declined a drug candidate for an indication we had found, we could in some cases acquire the rights to develop the drug candidate for the particular indication. We have acquired one such drug candidate, but have not established a development plan for that candidate. Under the terms of another agreement, we may become equal owners with our partner of drug candidates for which we discover potential new therapeutic utility and we would jointly decide how to proceed with the development, commercialization and funding of such candidate. Revenue from our Drug Repositioning Division has not been significant to date and we do not expect to receive significant revenue under any of our drug repositioning agreements in 2006 or 2007." genelogic.com Eli Lilly, Organon, Roche, Pfizer, Millennium, and an "undisclosed partner" I've dabbled with Gene Logic in the past, but have never owned more than a few thousand shares. I have a medium-sized position in this right now (currently down 8%). I think this qualifies as high risk, high reward. I also qualifies as being a cheap stock, with a marketcap about equal to the cash they have in the bank. Ready made (risky!) business, selling for free.