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

To: Mike McFarland who wrote (17)	2/8/1999 4:04:00 PM
From: StockMiser	Read Replies (1) \| Respond to of 438

First, I don't think a lot of people realized the significance of the GZMO deal. Second, even fewer people realized this might be a major downer for Entremed. I think GZMO will benefit nicely from this news for the rest of the week and beyond.

To: Mike McFarland who wrote (17)	2/8/1999 5:19:00 PM
From: LLCF	Respond to of 438

<I grabbed a little bit in case the story makes the nightly news..> Well, you did get SOME news today... good to see you on another thread... you like this stock I take it: biz.yahoo.com DAK

To: Mike McFarland who wrote (17)	2/8/1999 6:59:00 PM
From: jeffbas	Read Replies (1) \| Respond to of 438

I thought the action was fine, but don't forget that Phase I clinical trials in humans will not start until 2000. For me the most important aspect of this is the fourth paragraph in the announcement which in effect says that because of GENZ reputation and expertise GZMO is able to get something that no little biotech company would otherwise be able to get. The child is leveraged by the parent. This reminds me a great deal of the ThermoElectron (TMO) model where the relationship with the parent provided many advantages to the children. I actually prefer the idea of GZMO not being an independent company, but a tracking stock. (Note that if GENZ were to do some acquisitions, GZMO would likely pick up related segments from GENZ for stock.) I think there is a possibility that the stock might retrace to the breakout point of $3, if the enthusiasm wears off and the market remains sloppy.

To: Mike McFarland who wrote (17)	2/8/1999 11:15:00 PM
From: scaram(o)uche	Read Replies (2) \| Respond to of 438

Mike: The project is far from phase I. It's an interesting new project for GZMO, but I honestly believe that the way to play this going forward is to short ENMD. Should gap down tomorrow and continue, relentlessly, for several days. This, IMO, is the telling story..... "Genzyme is the appropriate licensee for this compound," commented Donald P. Lombardi, director, technology transfer, Children's Hospital, Boston. "Genzyme possesses the manufacturing and commercialization expertise, the technical and financial resources, and the willingness to make the needed strategic commitment to develop this compound." Children's has committed to being their own competitor. Rick