FROM THE ANNUAL REPORT:
DEAR SHAREHOLDER-Over the last year we have made a number of important changes at Procept. As a result of data that we have generated, our company now has the strongest portfolio of research and drug development programs in its history. We have taken new directions on two lead programs, embarked on two new drug discovery programs, and dropped programs that resisted our best research efforts.
As I write this letter, we are involved in several discussions with potential pharmaceutical partners who have recognized the scientific value of these new initiatives. Predicated on the successful conclusion of these discussions, combined with the steady progress that we are making in clinical trials with our topical microbicide designed to prevent HIV infection, I believe that we will end the coming year both scientifically and financially strong.
As we ended 1995, PRO 2000, a compound that blocks infection of T cells by HIV, was being evaluated as an injectable drug to reduce the level of virus found in patients. The results of that trial indicated that we would be limited in the amound of drug that we could inject. An innovative solution developed by our scientists was to reformulate this drug into a gel that could be used by women intravaginaly to prevent transmission of HIV and other sexually transmitted diseasses such as herpes.
We are now conducting two Phase I safety studies of this PRO 2000 Gel in a total of 72 volunteers in London and Antwerp. These studies are being supported, in part, by the British Medical Research Council. This drug candidate has many advantages over competing efforts. In laboratory studies it is effective against a wide variety of HIV strains. It has also been shown to be effective against herpes simplex virus. It is stable, not absorbed, and is straightforward to manufacture. Based on these studies we hope to initiate additional Phase I/II trials later this year. We have been very successful in generating the support and recognition of this program by health agencies in the U.S. and internationally.
It ahas also been challenging for us and the rest of the pharmaceutical world to find small molecules that bind to receptors like CD4 and CD2 in such a way as to inhibit their activities. Again, we have taken a new direction which, if successful, would result in a new discovery technology for these types of drug targets. The technique, known as SAR by NMR, builds on our existing structure-based drug design tools and involves using powerful NMR instruments to identify and optimize drug leads.
Finally, new programs to develop drugs to prevent and treat infectious diseases such as tuberculosis, autoimmune disorders such as rheumatoid arthritis, and organ transplant rejection have been initiated. These earlier stage programs have moved quickly and we expect to create scientific and commercial value throughout this year.
While we were faced with numerous challenges during 1996, we met these challenges with creative solutions. Our employee base, while smaller that a year ago, is a very strong group of people who are driven and focused on building a successful drug discovery company. I am pleased to be part of such a group and look forward to reporting our accomplishments to you throughout the year. We are aware of the need to create value for our investors and are decicated to achieving this goal.
Sincerely,
Stanley C. Erck
President and CEO |
