From the Analytical Investor:
An update on well-run R&D biotech Procyon [PBP,TSE:$0.94]finds the Company reducing its orphan status by gaining more institutional support with the completion of a 1
million share private placement @$1.02/share, with two Quebec-based institutions each taking 500,000 shares. With over $12 million on hand @ Mar.31, the financing is
useful but, unlike many
of its peers, was not essential. Principal objective was to qualify PBP for the Quebec Stock Savings Plan, which will be helpful in broadening local market interest.
While market performance, as with most of our juniors, has been disappointing in recent months, PBP continues to make solid progress toward bringing its two
advanced-stage products, Colopath and Fibrostat, to market. The latter, a topical cream for the treatment of severe scars resulting from surgery and burns, is in the final
stages of Phase ll clinical trials at 8 centres across Canada..
Phases lll trials are expected to get underway in Q3. Canadian rights have been licensed to the Company's development partner, Crystaal, a division of Biovail Corp. for
$1.5 million for development through Phase lll, plus a double digit royalty. U.S. trials are expected to get under way by Q2/02. With no comparable product in sight, the
potential market over time is estimated to be in the area of US$ 500 million.
While it is a mug's game to endeavor to forecast earnings at this stage of corporate development, PBP is clearly developing products with significant market potential.
With cash in hand and competent management headed by CEO Hans Mader, two products close to revenue generation and two impressive cancer candidates [PSP94 for
prostate cancer and the ANA platform with multiple cancer potential] for an encore, we believe patient investors in PBP will be very well rewarded over the next 12 months
and beyond.
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