Okay, I agree their IP is worth a bunch. Who's paying up for it though? With cash and assets they have, their end is near unless someone intervenes. Who is it going to be? I'm long, but surely not strong anymore.
Genzyme Corp. will not walk away from GZMO and its tremendous IP portfolio, clinical trials, and collaborations. GZMO has many options for raising additional capital. Also, despite what some would have you think, not all of these options are dilutive to shareholder value. GZMO is in a better position than virtually all of its small cap competitors. I'm not worried. Genzyme will stay the course.
According to the 10-K report, when Genzyme General provides cash to GZMO or GZBX it will receive shares of the divisions at market prices. All of these received shares are then �reviewed annually, and must be either sold or distributed to the holders of Genzyme General stock.� The way I see it the only other way for GZMO to have more access to cash without dilutive effect is for GENZ to get additional loan facility beyond 2003 and extend some of that loan facility to GZMO. If GENZ is willing to do that henri should make that announcement now rather than later to alleviate GZMO shareholders' anxiety about dilution.
If there are other ways to raise cash I would appreciate the info.