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Biotech / Medical : GENZYME - THE KING OF THE BIOTECHS -- Ignore unavailable to you. Want to Upgrade?

To: Harold Engstrom who wrote (271)	5/22/1998 10:45:00 AM
From: Lighthouse	Respond to of 410

Thanks for the post. Surgical products can be a very good business, but you have to GPO accounts, a massive salesforce and high market share. GENZ has a very long row to hoe in this field. I was also put off by their comment (second hand) that they were going to be using price to increase share. That is the last thing I would want to compete on and shows they have a weak hand in this area. Do you think they bought DSP in order to push Seprafilm products? If so . . . that strategy has not worked. GENZ acts like it wants to be a merchant bank for emerging biotechnology products/techniques. Until recently there was probably a good case for GENZ doing it . . .I personally like the structure of GZTC and GENZL (although until GENZL has an MIS product I doubt the procedure will take off). A very good tax shell game for the corporate parent. Excellent point concerning the company having to prove it can market products. Thyrogen should be like Cerezyme, smallish patient pool and very distinct products. Renagel looks like it will take more of a sales job. I will be watching that rollout. I would buy into this company today if they dumped the surgical area, but may hold off a while longer. Thanks again!

To: Harold Engstrom who wrote (271)	5/26/1998 11:43:00 PM
From: Spekulatius	Read Replies (1) \| Respond to of 410

I have held Genz for a couple of month 18 month ago and studied it in detail. I like there approach to niche solutions with less competition like the Ceredase but what I don't like is that they issue a lot of shares. The No.of shares has grown somewhat like 80% since 92,while the revenue has less than tripled.If we look at the rev. for 1 share it basically has moved from 4$ in 92 to a bit less than 8$ in 98. Well that's solid but not outstanding. Still the earnings a driven by Ceredase and they need to develop a second Cash Cow to sustain growth. I don't see anything coming for the next two years. Thus I think,this is more a value investment which may yield decent returns with less risk than other Biotechs but also less potential for outstanding returns. These are the reasons why the share price is comparatively low