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Genzyme Molecular Oncol. (GZMO) Message Board

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  • gladpick gladpick Feb 5, 2003 4:02 PM Flag

    Conference Call and '03 Funding

    I agree. I thought it was a very positive presentation given the fact that raising cash in this environment is very difficult. I encourage everyone to listen to the archived presentation if you did not listen to the conference call.
    In addition to your comments, a few specifics for those who do not have time to lisen to the tape:

    In order to preserve cash the trials for the electrofusion melanoma vacine will be delayed. They would concentrate on the products that we already have partners and also on those that there is a good possibility of high partnering. Gail indicated that they are in serious discussions with some companies who are interested in partnering. In addition she indicated that there is a high level of interest in our angiogenesis and small molecule research including HIV and AIDS. The trial delays including melanoma electrofusion would conserve cash and would reduce the previous loss guidance by $5 to 6M which allows $10M cash into 2004. This would take us into mid2004 without any borrowing from GENZ. She will try to get more partnership if possible so as not to tap into GENZ's loan facility which would cause dilution.

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    • This compan yis like pissing into the wind.
      No products yet. no earnings. no profits,
      no sotck price. Delaying to save money is
      like about to go bankrupt.
      who would partner with no winning anything?
      Lots of sail, no wind equals no go.

      • 2 Replies to capp012
      • capp012,

        I agree with everything that Anotheranalyst said in responding to your post. I am in GZMO not for it to produce a profit right away but to engage in research to discover drugs. Naturally that would require a MINIMUM of 6 years for each drug to get to the market. So anyone who buys or owns GZMO must be patient and have a long time horizon/view. If they can not they should not own this stock. Naturally, for this type of stock there is a HIGH risk/reward possibility. Therefore you should be prepared to see your investment evaporate if GZMO is not successful or be handsomely rewarded if successful. I personally am banking that GZMO would be able to find and bring to market a cancer drug for one of the early caught cancers. If it happens GZMO could skyrocket.

      • capp012: You're wrong. While it's true that GZMO is not yet profitable, it has both products and revenues. Further, it's current stock price reflects the highly risk-averse climate that currently exists in the world equity markets. The cost of risk based capital is at a multi-year high and this is taking a huge toll on biotech research worldwide.

        While I don't agree with GZMO's decision to delay the melanoma electrofusion vaccine trial, I realize that this was probably made, at least in part, in an effort to preserve shareholder value.

        Last, clearly GZMO is not the right kind of company for someone with your investment temperment. I respectfully suggest that you move on, perhaps to a mid to large cap value stock.