Biotech anyone? I'm in. Jeff
Bridge Technology Group Announces Investment Opinion on Megabios Corp. -Valentis, Inc.-
NEW YORK--(BUSINESS WIRE)--April 6, 1999--
Bridge Technology Group LLC Initiates Coverage of Megabios Corp.
(Valentis, Inc.) With a Buy Recommendation
Please Visit Bridge's Web Site at www.BridgeNYC.com
for Detailed Report
Bridge Technology Group LLC announced today that it has initiated coverage of Megabios Corp. (Valentis, Inc.) (Nasdaq: MBIO) with a BUY recommendation. The full text of this report can be accessed at Bridge's web site, at www.BridgeNYC.com.
Excerpts from the report follow:
Following the approval of the shareholders of both Megabios and GeneMedicine on March 18, we are initiating coverage of the merged company with a BUY recommendation. The new company intends to operate under the new name of Valentis, Inc., in the near future. We believe this merger was synergistic from a number of perspectives, and the resulting company is the clear leader in plasmid-based gene therapy using lipids as the means of gene delivery. Valentis has seven potential products in Phase I/II clinical trials, and 24 therapeutic genes in research or pre-clinical development, significant collaborative partnerships with Glaxo Wellcome, Eli Lilly, Roche and DSM Biologics, a combined intellectual property portfolio that should strengthen the new company's ability to compete in the gene therapy field, and a stronger balance sheet. Together, we feel Valentis has all the key technological components - gene delivery, gene expression and gene medicine production - to successfully develop and commercialize gene therapy and other products. We believe the company is significantly undervalued relative to comparable companies participating in the gene therapy field and are recommending purchase of the stock for those investors tolerant of the risks associated with small-cap, developmental-stage companies.
Impressive Clinical Product Portfolio - Seven Products in Clinical Trials
- Cancer Gene Medicines: Valentis has clinical trials ongoing with
Interleukin-2 (IL-2), IL-2 in combination with superantigen B,
and Interferon-alpha (IFN-) for treatment of head, neck and lung
cancers. Preclinical trials are also in progress on the
tumor-suppressing BRCA1 gene to treat breast and ovarian cancer
and an IL-12 gene medicine.
- Pulmonary Gene Medicines: Valentis has two clinical trials
underway currently - one to treat cystic fibrosis (CF) and one
that uses the alpha-1 antitrypsin (AAT) gene that is being
developed to treat AAT deficiency, a significant contributor to
the development of emphysema.
- Cardiovascular: Two clinical trials are ongoing in Finland using
Valentis technology to develop vascular endothelium growth factor
(VEGF) gene medicines. VEGF has been shown to induce
angiogenesis, and is being evaluated for use in the prevention of
reclosure of vessels in patients undergoing angioplasty.
Strong Corporate Partnerships - Strategy to Diversify Technology Portfolio
- Valentis has multiple, strong corporate partnerships to help
defray the high costs of drug development and spread the risk
over multiple programs in various therapeutic areas. Partners
include Glaxo Wellcome, Eli Lilly, Roche and DSM Biologics, a
leader in the manufacture and supply of biologics.
- We are impressed with management's vision to leverage its
expertise in gene delivery and create a company with a more
general focus on biologics delivery. This should serve to broaden
the Company's technology base and product pipeline, diversify
risk, and possibly shorten the timetable to product revenues
(should products be acquired or licensed further along in the
clinical process).
Compelling Valuation - Moving Forward from a Position of Strength
- As of the date of the merger, the combined company had cash and
cash equivalents of $50 million; management has expressed its
goal to reduce its burn rate to under $15 million per year during
1999 as a result of the integration of the two companies.
- With several years of cash available, we believe Valentis to be
in a position of great financial strength, a unique
characteristic of a development-stage biotechnology company. In
addition, versus its peer group, we believe Valentis to be
significantly undervalued based on the breadth and depth of its
product and technology portfolios.
Bridge Technology Group LLC is a registered investment advisor focused on identifying emerging growth companies in the healthcare and information technology sectors that offer compelling investment opportunities over the long term. By providing comprehensive financial services, including corporate finance, M&A advisory, strategic partnering and communications consulting, the company positions itself to provide a fully integrated package of value-added services to emerging growth companies.
The information in this press release has been obtained from sources that Bridge Technology Group LLC believes to be reliable, but the Company does not guarantee its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation by Bridge Technology Group LLC for the purchase or sale of any securities. Bridge Technology Group LLC has performed investment banking, consulting or other services for MBIO and may solicit investment banking, consulting or other business from, any company mentioned in this release. Bridge Technology Group LLC or persons associated with Bridge Technology Group LLC may at anytime be long or short any of the securities referred to herein and may make purchases or sales thereof while the Company's reports are in circulation or posted on the Bridge Technology Group LLC web site at www.BridgeNYC.com. This material, or any portion thereof, may not be reproduced without prior permission from Bridge Technology Group LLC. Bridge Technology Group LLC is not responsible for the contents of this document that is intended for electronic transmission and could be thus subjected to tampering or alteration. Copyright (c) 1999 by Bridge Technology Group LLC. All rights reserved.
CONTACT:
Bridge Technology Group LLC, New York
Jeffrey B. Davis
212/554-4158 (phone)
212/554-4058 (fax)
info@BridgeNYC.com
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