Another research Report:
Procyon BioPharma (T-PBP)
Procyon Biopharma's two recent licensing and
development contracts with Biovail and Biovation
(UK), respectively, will start to generate
meaningful revenues for the Company in fiscal
2001.
The Company has four products in various stages
of development, the first of which is ColopathTM ,
which should begin commercialisation in calendar
2001. Colopath is a test for colorectal cancer and
will be marketed to be used in conjunction with the current Fecal Occult Blood
Test (FOBT). The Colopath test is less invasive than the FOBT, making it
more readily acceptable for use on younger patients that may have a higher
risk of colorectal cancer due to family history or gastro-intestinal problems and
therefore used more frequently.
FibrostatTM is a topical cream for the management of scarring, pain and
irritation resulting from general surgery, plastic surgery and burns. The cream
will complete Phase III testing in 2001 with commercial launch of the product in
Canada in 2003 and in the US and the EC in 2004. Fibrostat was recently the
target of a licensing agreement with Biovail for the Canadian marketing rights.
Procyon will receive a total of $2.5 million over the development period with
double-digit royalty payments beginning at commercialisation. Other
geographic regions will be licensed in the near future.
PSP(94) is a naturally occurring peptide that binds to the surfaces of
cancerous prostate cells making it an ideal candidate for diagnostic and
therapeutic purposes. Clinical trials are set to start in the middle of 2001, with
Phase II trials planned for 2002. Look for a therapeutic partner to be signed
some time in late 2001 or 2002.
Finally, ANAs are antibodies naturally produced by the body that bind to the
nuclear matter on cancerous cells and assist the body's natural defense
mechanism in fighting off the cancer. Since the ANAs are not cancer specific,
the product could one day be used as a diagnostic tool, a therapy and perhaps
even a vaccine. Biovation (UK), a member of the Merck KGA Group, recently
signed a developmental agreement with the Company with the initiation of
clinical trials planned for late 2001.
Procyon has products that are desperately needed by large potential markets,
they have established licensing and developmental contracts with major
pharmaceutical companies and are actively searching for additional partners.
We feel that the Company has tremendous potential and is well financed to
fund their ongoing research. We have a Speculative Buy rating on the
Company with a $3.50 target price for the end of 2001. |
