David, further to Andrew's posting, the following for your perusal. IGGI got back to the $6.00 range today. Looking very good!
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Biomed Report
IGG International awaits fed OK of Elexa product
Tom Salemi
A non-toxic fungicide created by IGG International Inc. of Cambridge has proven once again it can remove some of the wrath of grapes--and even tomatoes and potatoes.
Elexa, a carbohydrate molecule compound, passed two independent tests conducted by researchers working with the University of California at Davis. The California tests show the natural fungicide works as well as its toxic counterparts in keeping fungus off Chardonnay grapes,
according to IGG.
Test results, released last week, reflect those conducted on the fungicide just last year. Now IGG officials are waiting for the grand-daddy of all test results--approval from the Environmental
Protection Agency--to come through for the company's closest commercial product.
"At that time we could commercialize the product," said Richard Salter, vice president of corporate development at the Kendall Square company.
"And we're already talking to companies to assist us in that effort. We would be ready to turn it around in 60 days."
IGG and investors are banking on Elexa becoming the first of many SafeScience (their market name) agricultural products to be used on the utilization of complex carbohydrate compounds. The technology is based in extracting the carbohydrate compounds from plants and modifying their structure into a compound that can issue commands to organisms at the cellular level.
IGG doesn't create a new carbohydrate molecule. Instead, it takes a carbohydrate molecule from a plant and isolates the part needed to stimulate the desired response.
In the case of Elexa, the desired response is warding off the fungus. Elexa is sprayed on the plant in a water mixture and a substance that helps it stick to the plants.
The California tests--conducted by researchers Douglas Gubler and Larry Bettiga--demonstrated the all-natural fungicides ability to do the job.
Bradley Carver, president of IGG, noted that Elexa holds one distinct advantage over its chemical counterparts: The carbo-based spray doesn't build up on the plants or fruit, and it's safe for people to eat.
"That means you can spray up to the day they're picked, and you don't have to worry about toxic residue," Carver said.
The carbohydrate compound won't stop at killing fungus. IGG is crafting pesticides and other agricultural tools to tap into the $40 billion market.
The company is already talking alliances with chemical companies and distributors.
After receiving $2.5 million in financing at the beginning of the year, IGG could start selling Elexa in Chile in a few months when the final approval from the Chilean government is expected.
For the quarter ending March 31, IGG reported a loss of $750,000, or seven cents a share, on no revenue, compared with a loss of $500,000, or six cents a share, on no revenue for the same period a year ago.
Early last week, IGG's stock was trading at $3.88. It's 52-week high was $6.38 while its low was $1.38.
At least one investor, David Taft, president of IBS Capital Corp., likes what he's seeing at IGG. Taft's IBS recently contributed $250,000 to the company.
With EPA approval expected to be only a few months away, Taft thinks his investments in IGG will pay off when the chemical-free fungicide hits the $5.6 billion fungicide market, where farmers will be able to choose between working with traditional toxic fungicides or IGG's all natural Elexa.
Taft said he's sure Elexa will have its customers. "The question is how much will they sell and how soon," Taft said.
Even if Elexa garners only 5 percent of the market, "what I have is a homerun on the market," Taft said.
But fungus wasn't always the company's target.
IGG started with a cancer therapy, but switched gears into agriculture to take advantage of the quicker review process. If approved, sales of the fungicide would provide capital to fund the longer-term development of human pharmaceuticals. The company is already running clinical tests on the cancer-fighting products in hospitals in Philadelphia and Houston.
IGG started as International Gene Group in 1992, developing human therapeutics. In 1995, IGG International, the new parent company, was formed to include International Gene Group and Agricultural Glycosystems, the developer of Elexa and the other agricultural products.
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TOM SALEMI is a biotechnology reporter for the Boston Business Journal.
Happy Investing!
Kevin
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