2 things came to my attention today with regards to Bioject.
First, Paramount Capital filed with the SEC, on a form SC13D/A, notification that they have sold 611K shares of BJCT, much of it last week (ending on 5/8). In the January proxy statement, it states that Paramount owned, at that time, 2,239,842 shares. This recent filing shows ownership of 1,628,571 shares. So, that's where much of the supply has been coming from. I am assuming that this is profit taking on their part, and that they are done for now. The reason for my assumption is that, so far as I know, they didn't have to file for 60 days, but they filed almost immediately. They still own 1.6M shares. If they intended to sell more, they would have waited to file, and not tipped their hand.
Second, I got hold of a copy of the May 13 letter from Jim O'Shea to the shareholders. Since it contains some interesting news, I will transcribe it here. If you don't get this newsletter, call the company and get on the mailing list.
"I'm pleased to report that, in the last month, we have continued to make significant progress on a number of fronts at Bioject and I write to give you an update. We've strengthened management, begun pre-clinical trials on a continuous glucose-monitoring device, expanded our needle-free injection product portfolio and improved our capital base. Here are the details."
"Promising Outcome of GlucoTrax's First Human Pre-clinicals"
"In early April, we conducted pre-clinical trials designed to test the performance of a prototype of GlucoTrax, our continuous glucose-monitoring device being developed in joint venture with Elan Corporation. The patch-like device was used to monitor the glucose levels of six diabetics throughout their dietary swings for 15 continuous hours and the results were very encouraging. The device tracked the patients' actual glucose levels against whole blood reference samples with significant levels of accuracy, validating our concept and putting us on track for additional pre-clinical trials this year and pivotal clinical trials in 1999."
"The trials were directed through a collaboration of the Bioject/Elan joint venture development team and Dr. Anthony Fitzpatrick, Medical Director of Elan Pharmaceutical Technologies. They were conducted according to U.S. FDA regulations by Bio-kinetic, one of Ireland's top CROs."
"Strengthened Corporate Leadership"
"As announced last month, Mike Temple joined us as Chief Financial Officer and he's already making valuable contributions. His depth of financial and operational experience in a variety of business environments, including the medical technology field, along with his thorough understanding of Bioject's marketplace make him a strong asset for the company."
"In addition, Bob Gonelli, Chairman of the joint venture we established with Elan to develop GlucoTrax, has agreed to serve as Acting President of the new entity. Bob played an important role in managing the joint venture to date and setting its direction, and his industry knowledge, engineering expertise and experience in managing start-up medical technology make him an ideal leader for the company. Working with Todd Davis who serves on the board of the joint venture, Bob will spearhead our search for an executive to become the official president of the joint venture."
"Strategic Expansion of Product Portfolio"
"Vitajet, our newly acquired manufacturer of personal use needle-free injectors, has expanded our product portfolio with its needle-free 0.5cc spring powered subcutaneous personal injector. In addition to superb technology, Vitajet brings to us its founding president, Sergio Landau, who, with 20 years of design experience and strong reputation in the marketplace, is already making a significant contribution to Bioject's engineering team."
"Acquiring Vitajet marks a critical step in our strategy to develop the in-home applications market for our needle-free injection systems. This spring-based injection technology, traditionally used for insulin, can be developed for myriad applications in the fast growing home-injection market. The Vitajet acquisition is expected to be accretive to Bioject's revenues and cash flow by year-end."
"Improving Our Capital Base"
"Finally, I'm delighted to let you know the DeSpain/Coby, our second largest shareholder, and other holders of Class G warrants, elected to convert 1.45 million of their Class G warrants to common shares of Bioject. These transactions raised approximately $1 million for the company."
"The momentum we're building at Bioject is exciting - for our clients, our partners, our employees and, of course, our shareholders. With an eye toward increasing shareholder value, I intend to continue building on this momentum and look forward to keeping you up to date on our progress."
"Regards,
Jim O'Shea
Chairman, President and
Chief Executive Officer" |
