!Kung,
<<Never heard of ABTI>>
As a regular denizen of the ABTI thread (and proud shareholder, so watch what you say ;-)) I forgive you.
ABTI (current: $140M cap @ %$9/shr) is "engaged in research and development of new classes of carbohydrate products." Specifically, they finished enrollment in a PIII (1249 pts @ 40 centers) trial of their lead, Betafectin, in February and expect to announce results "at the end of the second quarter of 1997." Betafectin is a carbohydrate immunomodulator, current indication is prevention of infection in major GI surgery; also have a PII in surgery for Crohn's disease going. If the GI surgery PIII is successful they plan to add indications like crazy.
They also have some other immunomodulator programs, but the MycoTox deal addresses their other thrust which is carbohydrate anti-microbials. They claim to be having success in pre-clinicals attacking Aspergillus and Candida with candidates for a systemic drug.
MycoTox is a private biotech, in Denver, with a proprietary set of fungal targets...that's about all I know on them. I remember reading something on them in a Sunday section feature from either the Post or the RM News on biotech in Colorado, but I've long since lost the clipping.
Judging from our shared interest in CYTL, you might want to take a look at ABTI. If you've got a sweet tooth for carbo companies...BTW, for what its worth, Peter Drake at Vector Securities raised them to a "buy" from attractive in mid-March, with a $35 1-year target.
Always wanting to be balanced, this is essentially a one product company for now, they probably will need to issue some more stock this year, the product is as of yet unpartnered and the CFO left for a private biotech in March. IMHO though, this is one underfollowed, undervalued biotech. We should know by the end of June.
biowa
*******************************
Alpha-Beta Technology, Inc. (Nasdaq: ABTI) has announced today that it has signed a term sheet to acquire all of the outstanding shares of MycoTox, Inc., a privately owned biotechnology company located in Denver, Colorado. The two companies have been working together since early 1997 to screen small-molecule carbohydrate compounds generated by Alpha-Beta against MycoTox's proprietary agents for anti-fungal activity. The acquisition will accelerate Alpha-Beta's anti- fungal research program, provide an operating anti-fungal drug screening business and complement the technology for the development of a rapid in vitro diagnostic to detect and monitor systemic fungal infections.
MycoTox is engaged in the discovery and development of novel anti-fungal drugs and targets. The Company also provides a comprehensive screening service designed to identify samples exhibiting anti-fungal activities against pathogenic fungi.
Under the terms of the agreement, which is based on a value of $3.0 million, MycoTox shareholders will receive an $1.0 million up-front payment. An additional $2.0 million of common stock will be issued subject to future performance and time-based milestones. MycoTox will be merged into a wholly-owned subsidiary of Alpha-Beta and will maintain operations in Denver. The incremental increase to Alpha-Beta's 1997 expenses is expected to be approximately $500,000. The acquisition is expected to close within 30 days.
|
