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Biotech / Medical : GelTex Pharmaceuticals (GELX) -- Ignore unavailable to you. Want to Upgrade?

To: Graham Marshman who wrote (121)	12/25/1999 1:44:00 PM
From: JMarcus	Read Replies (1) \| Respond to of 127

Graham, I haven't heard any news lately about the pipeline from Sunpharm. I was intrigued to listen to an Informed Investors Forum presentation by ILXO and hear the speaker enthuse about what an attractive target polyamines are for cancer therapy. ILXO's approach (still preclinical, as I recall) is to use a molecule that causes the cell membrane to prevent polyamines from entering the cell. Polyamines play an essential role in cell division (they are required for the replicaiton of DNA). Although a cell produces polyamines on its own, a rapidly dividing cell (e.g., a cancer cell) needs more polyamines than it can produce on its own, so by blocking the outside supply of polyamines from entering the cell, you can slow down, if not block altogether, the duplication of the cell. Sunpharm's approach, as developed by its chief researcher, Dr. Bergeron, is to develop pseudo-polyamines (i.e., polyamine analog's), which can pass through the cell membrane to get into the cell, but cannot get out again (genuine polyamines can pass through the cell membrane in either direction). Because the cell attempts to maintain a proper concentration of polyamines and for that purpose cannot distinguish the imposters from the genuine polyamines, the concentration of genuine polyamines in the cell gets diluted to the point where there are not enough polyamines in the cell to support cell division (the polyamine analogs are barren in that respect and cannot themselves support cell division). What caught my attention was to hear a second company (ILXO) corroborate Dr. Bergeron's view that polyamines are a good target for fighting proliferative diseases. My impression is that Dr. Bergeron knows more about polyamines than anyone else, so if this area has important therapeutic implications, having access to Dr. Bergeron's pipeline is a very valuable asset. The stock market is all excited about genomics research just now because of its implications for being able to generate a huge pipeline of new therapies. When that enthusiasm begins to spread to third tier biotech companies with great science that is also capable of generating a long-lasting pipeline of new and valuable products, companies like GELX (as the successor to Dr. Bergeron's research) will become the new hot item. GELX is forming a base around $10, being held down there by tax loss selling. As soon as we get through this Y2K thing, I'll be very tempted to go long again. Marc

To: Graham Marshman who wrote (121)	1/13/2000 3:02:00 PM
From: JMarcus	Respond to of 127

Chase H&Q analyst names GELX one of her top picks among microcap biotechs, and she didn't even mention the SUNP pipeline: "SAN FRANCISCO (CBS.MW) -- Although there's been a lot of buzz surrounding the genomics sector of the biotech industry, Chase H&Q analyst Meg Malloy said in an interview there's still value to be had in some of the smaller companies developing products for niche markets. Her picks include Connetics Corp. (CNCT: news, msgs), which makes ConXn, a drug to treat scleroderma . The disease is a connective tissue disorder that can be fatal in its most severe form. She believes the drug is likely to be a key driver of the company's growth. The U.S. market for scleroderma drugs exceeds $500 million, Malloy said. The company also has a growing dermatology business. Malloy said the stock could reach $30 a share in the next year. Another pick is GelTex (GELX: news, msgs). Malloy said the company has a second generation version of its Renagel capsules in the wings as well as several other candidates in the pipeline. Renagel removes excess phosphorous in kidney patients who lack the ability to filter it themselves. The company also has a cholesterol lowering drug, Cholestagel, for those who can't take Lipitor or other statins, the most widely used cholesterol drugs. Malloy said the stock could reach $30 to $35 within 12 months." cbs.marketwatch.com