PRCY - ANY BODY HAS ANY NEWS ON THESE Message Board

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Biotech / Medical : PRCY - ANY BODY HAS ANY NEWS ON THESE

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To: Chris Nevil who wrote (366)	6/12/1998 2:59:00 PM
From: Coha	Read Replies (2) of 670

re: shareholder's meeting There were about 50 people there in total, probably about half (or more) were employees or related to the company in some way. I'm guessing actual shareholders were in the minority - it was 1/3 the crowd from last year is my guess. Typically, Clifford pulled no punches in his presentation. It was all there. Including the following: 1) They are forecasting $600k on the top line for the 2nd qtr. For those without their calculators, that's a 300% increase over qtr. 1. 2) They will be launching Tricomin soon. 3) They will be expanding the skin care line (expected to be 50% of their revenues when the strategic plan is fully implemented). In addition, they are continuing to seek partners etc. and they will also be launching the Osmocyte Island Dressing. As proof of the ramp, Clifford noted that costs for the Osmocyte Pillow have been cut 77% as production has increased from a batch size of 3kg to 56 kg. (PCA costs have shed 30%). Matt Leavitt had a chance to speak as well. I should have commented when he was added to the board in April but he is a crucial addition IMO. He made a strong case for the company's products, suggesting these are "very visible products". He emphasized the "newness" of copper compounds in the hair restoration area. He also suggested that Tricomin will be - already is - widely anticipated and could have a major impact once introduced. Clearly the cash situation is critical. It's where we all focus. Clifford made no bones about the urgency to bring in revenue. He also seems very confident - even pointed out that the company expects breakeven in 1999. Some kahonees. (BTW, I would expect these guys could raise some cash via debt if they needed to - once it is clear there is demand for their products and if the rev continues a significant ramp.) The next quarter bottom line may get a little ugly if they choose to take the full hit of the Humatech acquisition. Just be prepared for that. One of the Humatech founders talked as well - I found it tough to get a handle on this whole thing. It is new and still clearly in the infancy of finding the synergies as a subsidiary. But note again Clifford suggests that skin care will ultimately make up 50% of all revenues for the company. It is just a remarkable face-lift for this company (pun intended). If they make it, I doubt one will recognize much of the original Procyte. I found the meeting a complete opposite of the disfunctionality and frankly bizarre presentation of last year. The management seems clearly focused, together, and exudes confidence. They recently filled the TX sales position and will be filling the CA position imminently. If Wall St. has given them up for dead, they sure haven't - in fact, they will be visiting NY later this year to tell the story. I realize these dog and pony shows tend to emphasize the good news. However he got hit with some heavy questions and all of the answers were direct right back. This ain't no picnic. We all know that. But the revenue ramp is starting. Tricomin is waiting in the wings. Humatech is being consolidated in. I still really like this story and yesterday only furthered my belief that this company remains sorely undervalued. Coha

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