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Genzyme Molecular Oncol. (GZMO) Message Board

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  • anotheranalyst anotheranalyst Aug 16, 2002 5:39 PM Flag

    Word To The Wise

    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.

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    • 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.

      • 1 Reply to gladpick
      • glad: Think collaborations. Purdue Pharma, Kirin, etc. These deals were not dilutive to shareholder value. Similar deals will be struck as trials continue to show positive results. Also, I believe that GZMO continues to own some "proof of concept" IP that it doesn't have the resources to pursue. This "surplus" IP can be sold to raise additional operating capital.

        In any case, I don't care if GZMO has 16 million or 60 million shares outstanding when they bring their first successful cancer treatment to market. GZMO's research requires capital investment and more will be necessary from third party sources before GZMO becomes self-sustaining. In the end I am confident that GZMO will reward those shareholders who stayed the course with SIGNIFICANT risk-adjusted gains.

 

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