Replies to post #78703 on Biotech Values

[DewDiligence]

Musings on the CLDX-CRGN deal:

do you have an opinion on CLDX? CRGN deal seems like a good thing for CLDX.

I don’t follow CLDX closely, but this deal strikes me as a capital raise disguised as an acquisition of technology—I’m pretty sure the main impetus for the deal from CLDX’s standpoint is to take hold of CRGN’s cash stash.

This is CRGN’s impressive balance sheet as of 3/31/09:

http://sec.gov/Archives/edgar/data/1030653/000119312509102852/d10q.htm#tx21531_1

With cumulative losses since inception of almost $500M, CRGN must be considered one of the bigger biotech busts of all time. CRGN’s one undeniably great decision was to raise almost $200M @$41/sh at the exact peak of the biotech bubble in late 2000:

http://ir.curagen.com/releasedetail.cfm?ReleaseID=213551