The way I see all of these so called "dedicated" people at GENZ and GZMO is that they are not working for free or even for low salaries. They are well compensated. So far they have not shown any results that point to a promising product other than experiments in the test tubs or phase 1 which may have produced some positive signs that merit "further study." Lacking any definitive good results, the typical person on the street would think that GZMO will burn its present cash by 2003 and has to borrow from GENZ and issue shares to GENZ at pennies (?)a share (which GENZ has to distribute to GENZ shareholders). The only way for the street including me to think that there may be promise for GZMO is for management to use part of their salaries to buy GZMO shares. If Henri is not willing to use $50,000 to 100,000 of his annual $1 mil plus salary to purchase shares at $1.70 each, how can we expect the street to be enthusiastic about this stock? I have been recommending this stock for a long time and seen it go down as I have recommended it. At this time i believe Henry loves the losses that GZMO generates every year so that he can use it to increase profits shown for GENZ (without compensating GZMO for the use of such loss). There seems to be no incentive for him to make this tracking stock profitable.
And by the way I would not count on GZMO scientists to stick around much longer if some thing is not done about the stock price. I personally believe that GZMO should be auctioned off and proceeds be distibuted to us GZMO shareholder so that once and for all we are put out of our misery.
It is problematic at best for senior officers (insiders) of Genzyme Corp. to buy the company's tracking stocks (including GZMO) on the open market. If they buy and then there is a big market move to the upside on good news they can be subject to disgorgement of any profits that they realize. And to realize such profits they would have to sell some of their shares. What message would this send to shareholders and the markets? This is why you won't see a lot of insider buying by Genzyme Corp. or any other publicly traded company's senior officers.
Genzyme Corp. senior officers still receive a substantial portion of their total compensation in the form of stock options. IMO this is a good thing for GZMO shareholders. These senior officers see these stock options as an offset (at least in part) to the salaries they would otherwise be earning. So, in a sense, they are "buying" shares in GZMO - every time they receive their paycheck. Also, many Genzyme Corp. senior officers buy tracking stock shares in their 401(k)s.
I don't worry too much when I don't see insiders buying their company's stock on the open market. Of course, insider selling is something else.
As for the GZMO scientists, they will go (as the best scientists always have) where they are free to pursue their ideas and conduct quality research. Genzyme is definitely such a place.
If you want to be mad at someone, try President Bush. His policies are killing biotech research and new medicine development in this country. An example: after 19 months in office he still hasn't appointed a director for the FDA. IMO this is outrageous - and just so you know, I'm a lifelong Republican.