Biotech company is a good bet for investors

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.

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