Procyon BioPharma (T-PBP)
The movement to commercialization for Procyon
Biopharma has begun with the licensing of COLOPATHR
to IMI International Medical Innovations (T-IMI) for the
development, marketing and distribution to the colorectal
screening market. IMI and Procyon had broken off a
previous developmental agreement last August to
independently develop their screening tests. Now, the
Companies have returned to an agreement that will see
the commercialization of the tests as a joint package as
each test screens for a different markers. Although exact
financial terms were not disclosed, the agreement will
mean further milestone and royalty payments to Procyon.
Procyon also has three other technologies that are at various stages of development. Fibrostat, a
treatment to reduce the scarring, pain and irritation resulting from surgery or burns has received Phase II
approval from Health Canada. Phase III should begin some time this year. Procyon's two early stage
products Prostate Secretory Protein (PSP(94)) and Antinuclear Auto-Antibodies (ANAs) have both
completed Preclinical studies and will hopefully begin Clinical trials later this year. With the signing of the
COLOPATH agreement, all but one of Procyon's products has been signed to a developmental and/or
marketing agreement; an excellent situation in which to be.
During this year, Procyon changed their fiscal year-end from June to December and as such we are
awaiting the results for the six-month stub period ending December 31st, 2000. Our anticipation for the
six-month stub period is a loss of six cents a share on negligible revenues. However, once milestone
payments and the commercialization of COLOPATH begins in fiscal 2001 we anticipate revenues of
$2.2 million, but a continued loss of $0.11 per share. Looking forward, as revenues from royalties from
Procyon's projects really begin to flow in we expect strong revenue growth to continue. Therefore we
are maintaining our Speculative Buy recommendation and our price target of $3.50.
To read our December 5th, 2000 Research Report on Procyon Biopharma, please click here. |
