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Following the approval of the shareholders of both Megabios and Gene Medicine on March 18, we are initiating coverage of the merged company with a BUY recommendation. The company now operates under the new name of Valentis, Inc. We believe this merger was synergistic from a number of perspectives, and the resulting company is the clear leader in plasmid-based gene therapy using lipids as the means of gene delivery. Valentis has seven potential products in Phase I/II clinical trials, and 24 therapeutic genes in research or pre-clinical development, significant collaborative partnerships with Glaxo Wellcome, Eli Lilly, Roche and DSM Biologics, a combined intellectual property portfolio that should strengthen the new company's ability to compete in the gene therapy field, and a stronger balance sheet. Together, we feel Valentis has all the key technological components -- gene delivery, gene expression and gene medicine production -- to successfully develop and commercialize gene therapy and other products. We believe the company is significantly undervalued relative to comparable companies participating in the gene therapy field and are recommending purchase of the stock for those investors tolerant of the risks associated with small-cap, developmental-stage companies.
SMALLCAPS RESEARCH
SmallCaps Online Comments on PolyMASC Acquisition (HTML) (05/27/99)
Initial Opinion (HTML) (04/06/99)