Will Genz funnel part of the termination fee money to GZMO? This will result in less dilution, as parent company had reserved 12 million shares to GG shareholders for the cash and technology. I think GZMO can function well without CEGE's patent estate. These programs have heavy burn rate and GZMO is not financially deep enough to carry out all of these programs. Also heard that avigen is eating their lunch on haemophilia gene therapy program. Cege's failed aids vaccine bloodied them a few years back. I'm long cege as a value play, but find it has troubles.
Look at all the volume above the buyout offer. Somebody sees the incredible value in CEGE. Ownership is changing hands. CEGE agreed to poay $15 Mill they didn't have to. The shareholders would have turned it down AND IT WAS A MUTUAL AGREEMENT. They showed theeir idiocy in 1)Agreeing to those terms without some provision for their ABGX stake (which was a big portion of their Mkt Cap at the time) 2)Forking over $15 mill as if it was nothing Forking CEGE shareholders in the process 3)Spinning off ABGX in the first place 4)A few more things that I'm too mad to remember now. Goodbye Mr Sherwin, Pfeffer, et al ! You don't deserve no golden parachute !
Why would these things upset a gzmo or genz shareholder? I liked that deal long term because it could have helped all the genzyme companies especially gzmo but we can do just fine without cege. Gzmo has two cancer vaccines of our own as well as sage and several other products in development(antiangiogenesis,antigen discovery,dentritic cell fusion).
Looking at the current price of cege i don't see what the complaint is. They had no idea abgx would do so well so fast and in the end the board(Led by sherwin) did the right thing for the shareholder.