VRGN BUY RECOMMENDATION
This buy is from June.....about the Red Cross deal.
Read this and you will know what will happen to this stock when the Red Cross deal comes out. .....But when it comes out on the wire it will be to late.
For additional Viragen reports see www.virtualinvestor.com and look for 0ct. 1996 and Jan. 1997 reports. Very interesting and factual reports on Viragen.
Report Summary
Compliments of: The Cheap Investor
Release Date 6/97
Viragen, Inc.
Nasdaq National Market System - VRGN
Current Stock Quote= $2.31
Viragen is a development stage biopharmaceutical company engaged in the research, development, manufacture and clinical study of natural human interferons for the treatment of various viral diseases and immune disorders, including HIV/AIDS, hepatitis B & C and multiple sclerosis. The company's subsidiary, Viragen (Europe) Ltd. (Nasdaq - VERP) located in Scotland, will manufacture OmniferonT, the company's natural human alpha interferon product for which clinical trials are expected to commence early next year.
Buy Recommendation
We think Viragen Inc. is an interesting speculation. The development stage company's biggest asset is $40 million in cash. It also owns 72 percent of Viragen (Europe). With a 52-week high of $9.50, the stock is trading at its 52-week low. The company has approximately 39 million shares outstanding. The negative factor for Viragen and any other development stage biotech company is the question of whether it can bring its products to the market in large enough numbers to
generate significant sales and earnings before the cash runs out.
Last March Viragen completed $20 million in financing by institutional investors increasing its cash position to $40 million. The company's product, Omniferon, is a natural human leukocyte derived alpha interferon or Natural Interferon. Natural Interferon is a protein substance that stimulates and modulates the human immune
system inhibiting malignant cell growth without materially interfering with normal cells. In addition, Natural Interferon impedes the growth and reproduction of various viruses.
Omniferon has not been approved by the U.S. FDA nor the European Union (EU) regulatory authorities. Viragen expects to concentrate its efforts in preparing, filing and processing its applications and obtaining approvals for Omniferon from the FDA and the EU. Once approved, Viragen expects Omniferon to rapidly penetrate the $2 billion worldwide interferon market. (The interferon market is expected to reach $4 billion by the year 2000.)
The company is in negotiations with the American Red Cross for a long-term agreement for the Red Cross to supply human white blood cells (leukocytes) for production of Omniferon. The contract has taken "substantial time to negotiate because certain issues are without precedent," explained Charles Fistel, executive vice president of Viragen.
The Red Cross deal means Viragen would have a virtually unlimited supply of the white blood cells it needs to make its natural human interferon product. While other companies have produced synthetic forms of interferon, none has been able to produce natural interferon as cost-effectively as Viragen, say industry experts. Natural interferon is said to be better than its synthetic counterpart because, among other things, it causes fewer side effects.
On April 1, the company announced that The Canadian Red Cross Selection Committee has recommended Viragen as the CRC's preferred strategic partner to enter into a collaborative agreement to develop a natural interferon program for Canada.
While Viragen is speculative, it certainly has the potential to double over the next year. The stock can be followed daily in any major newspaper. For more
information contact: Viragen, Inc., 2343 West 76th Street, Hialeah, Florida 33016 or call (305) 557-6000.
Monday August 11 7:58 AM EDT
Company Press Release
Source: Viragen, Inc.
Viragen Opens Manufacturing Facility In Scotland
PLANTATION, Fla., Aug. 11 /PRNewswire/ -- Viragen, Inc. (Nasdaq:VRGN) through its Viragen (Europe) Ltd. subsidiary (Nasdaq:VERP) announced the opening of its first manufacturing plant to produce its second generation natural human alpha interferon, Omniferon(TM). Viragen's state-of-the-art facility is located in the Pentlands Science Park, Edinburgh, Scotland and has commercial production capacity of approximately $100 million. The Scottish Common Services Agency (CSA) through the Scottish National Blood Transfusion Service (SNBTS) has a collaboration agreement with Viragen providing long-term access to Scotland's supply of human white blood cells needed for Omniferon production. |
