Micro-Cap Tech Stock Report
Third Quarter, June 2000
Procyon BioPharma (CDNX-PBP)
During the quarter Procyon BioPharma raised $20
million from a private placement. Proceeds will be
used to advance its oncology products into clinical
development and to develop licensing agreements
for FIBROSTAT and COLOPATH. The equity
injection and a more advanced product development will allow
Procyon to meet the initial listing requirements for the TSE.
Procyon is preparing to file a prospectus in July to seek TSE
listing.
Procyon is progressing well with development of its product
portfolio, which includes two platform technologies for cancer
treatment (ANAs and PSP94) and two late-stage products
(FIBROSTAT and COLOPATH). ANAs (Antinuclear Antibodies)
bind specifically to multiple cancer cell types to enhance the
immune response to cancer cells. PSP94 (Prostate Secretory
Protein) is a treatment for prostate cancer. Procyon recently
received a European patent for PSP94. Patents have already
been issued in the U.S., Canada, Japan and Australia.
FIBROSTAT, currently in late Phase II trials, is a topical cream for the management of newly formed
scars following surgery or burns. Procyon has out-licensed FIBROSTAT to Biovail, who has committed
to finance the completion of Phase III trials, to be followed by application for approval by Canadian
Therapeutics Products Program, which is expected to take place in 2002. FIBROSTAT is expected to
be in 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.
Procyon is collaborating with IMI International Medical Innovations to jointly develop and commercialize
products (COLOPATH and ColorectAlert of IMI) for the screening of colorectal cancer. IMI will lead the
product development, clinical trials and commercialization of the combined technologies while
Procyon will provide scientific support and contribute to the funding. Both companies will share the
expenses and revenues pro rata. COLOPATH is currently undergoing clinical trials. Procyon believes
that there is a bigger market for COLOPATH as a screening device to screen general asymptomatic
population for colorectal cancer and plans to market the drug through large pharmaceuticals. The
target market comprises of population over age 50, and is projected at $100 million in North America
with a penetration rate of 20%. Clinical evaluation of COLOPATH is expected to conclude in Canada
by Q3-2000 and launch date is expected to be late 2001.
Procyon reported Q3 results reporting net loss of $3.0 million. The increase in net loss was a result of
relocation costs and increased R&D expenses. The $20 million financing will provide the resources
for Procyon to carry out its on-going developments and plans for expansion. A successful completion
of TSE listing would enhance the Company's profile in the market. The long term prospects of Procyon
seem quite attractive. Until Procyon completes the TSE-listing, we are maintaining our year-end target
of $4.00. |
