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Cell Genesys stock is trading at the high end of its range.

Cell Genesys (NASDAQ: CEGE, Bullboard) has made it clear that it can raise money. That should be a good sign for investors. The company came up with $30 million. It may need the money for development of its portion of the Phase 3 costs for GVAX immunotherapy for prostate cancer.

The company also beat Wall Street estimates in the last quarter. Analysts polled by Thomson Financial expected a loss of 42 cents per share. CEGE reported a net loss of $22.6 million, or 29 cents per fully diluted share, for the first quarter of 2008 compared to a loss of $29.4 million, or 49 cents per fully diluted share, for the same period in 2007.

Research and development costs were $29.3 million. CEGE also announced a deal with Takeda Pharmaceutical. Under the license, the company could receive up to $270 million if the GVAX immunotherapy makes it to market.

The company's shares trade near the high end of its range, at $3.89. CEGE has bought itself well over a year with its new capital raise plus $164 million of cash already on the books.

It won't take much good news on the company's flagship GVAX drug to move this one up.

ABOUT THE AUTHOR
From the news desk of 24/7 Wall St.

This report was prepared by 24/7 Wall St., LLC exclusively for Stockhouse. 

 
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Comments
This company's future is definitely very bright, especially considering they have so much available cash to deal with discrepencies. With $164 million, they seem to be sitting pretty in case they incur extra costs to bring their immunotherapy to market.
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