Article from another website from Golden Capital:
Since our initiating coverage on Procyon BioPharma in December
1999, its stock price climbed from $1.00 to a high of around $4 and is
now back down to $3. Several milestones were achieved during the last
quarter which helped lift the stock price. Procyon has out-licensed
FIBROSTAT, a scar treatment product in late Phase II. Biovail acquired
the Canadian rights to FIBROSTAT by committing to finance $1.5
million for the completion of Phase III trials, followed by application for
approval by Canadian Therapeutics Products Program, which is
expected to take place in 2002. Upon approval by CTPP, Procyon will
receive a payment of C$1 million in addition to royalty fees on sales.
FIBROSTAT will be marketed by Crystaal, the Canadian marketing
division of Biovail, and is expected to be on the market by Q1-2003.
The Canadian market for FIBROSTAT is estimated at $25 million and
worldwide market at over $500 million. Procyon is currently in
negotiations with licensing partners in the U.S. and Europe.
COLOPATH, a late-stage product for screening colorectal pathology,
including cancer, is currently undergoing clinical trials. COLOPATH
can be sold as a Class 2 medical device in Canada for monitoring
purposes, but Procyon believes there is a bigger market for
COLOPATH as a screening device to screen general asymptomatic
population for colorectal cancer. Clinical evaluation of COLOPATH is
expected to conclude in Canada by Q3-2000. Procyon is currently in
negotiations with potential partners to out-license COLOPATH in North
America, with a target launch date of Q1-2001. COLOPATH has
received U.S., Australian, South African patents and was recently
allowed a European patent. The target market comprises of population
over age 50, and is projected at $100 million in North America with a
penetration rate of 20%.
Last quarter Procyon completed most of the pre-clinical studies on its Prostate Secretory Protein (PSP94), a prostate
cancer therapy that inhibits tumour growth by triggering apoptosis (cell suicide). Procyon expects to file an IND later
with the FDA and CTPP to conduct Phase I (human clinical trials) commencing in Q4-2000. Phase II is expected to
begin six months following Phase I, which will be mid-2001.
Procyon completed two phases of private placement totalling $3 million. Two key investment institutions in Quebec's
financial community invested in Procyon, they are T2C2 and Innovatech du Grand Montreal. The funds raised will be
used for R&D and general expenses. Procyon is arranging a $20 million private placement expected to close by the
end of March. Upon completion of the licensing agreements for FIBROSTAT in the U.S. and Europe, as well as for
COLOPATH in North America, it is anticipated that the revenues from licensing fees and royalty on sales will increase
in the coming years.
We are sticking to our original target of about $4-5 on a fully licensed basis. |
