GZMO is a steal at its current price. It is so oversold it's ridiculous. Mark my words. You can't discount GZMO's IP portfolio down to less than nothing, but that is what the market has done. At the low today you could have bought all of GZMO's outstanding shares for $27 million. Something has got to give soon!!!
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.