Procyon Biopharma (PBP - TSE)
Closed at $0.80 July 25th, 2001
July 26th, 2001
Company Update
Procyon Biopharma today announced that they have outsourced the manufacturing of two of their compounds
as they prepare for the initiation of clinical trials. Goodwin Biotechnology will produce the Antinuclear
Auto-Antibodies (ANAs), while Multiple Peptide System (MPS) will manufacture the Prostate Secretory
Protein, PSP94, for the Company. This is a positive development for Procyon for several reasons:
1.The outsourcing of the manufacturing allows Procyon to concentrate on arranging the clinical trials for the
two compounds.
2.The building and approval process of a manufacturing facility for even one compound can take years and
millions of dollars.
3.Both Goodwin and MPS have already been approved for Good Manufacturing Process (GMP).
Overall, Procyon continues to move forward on the development of their two cancer therapeutics. In our
December 2000 Research Report we had estimated that PSP94 would begin clinical trials in the second half of
2001, while the ANAs would start in late 2001; the Company seems to be right on track to meet those targets.
In our original expectations, we had expected that some revenue from the Colopath product would have been
realised by now, but that has not yet occurred. Fibrostat's next milestone payment from Biovail may come as
early as the third quarter of 2001, but depends on the achievement of certain milestones. We are estimating
that the Company currently has around $10.8 M in bank after their recent $1M private placement, but will lose
around 5¢ per share in the three months ending June 30th, 2001. The Second Quarter financials are due to be
released in August and will shed considerably more light on these issues.
We are maintaining our Speculative Buy recommendation, with a year end target of $3.50. |
