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Biotech / Medical : Micrologix biotech -- Ignore unavailable to you. Want to Upgrade?

To: Larry G. who wrote (604)	11/28/1999 12:31:00 PM
From: Sean Janzen	Respond to of 792

MBI management can only be viewed as brilliant if they can pull this off. I came across more definitive numbers regarding R&D costs of a drug in the 90's. "Based on a separate analysis by the Boston Consulting Group, the pre-tax R&D cost for drugs introduced in 1990 is $500 million." "Only three of ten marketed drugs produce revenues that match or exceed average R&D costs": searchforcures.com "One-third of company-financed R&D in the United States is devoted to evaluation of promising drug compounds in human clinical trials [Figure 2-5]. Phase I, II, and III trials, required for drug approval, account for 28 percent of R&D." searchforcures.com

To: Larry G. who wrote (604)	11/30/1999 1:30:00 PM
From: Sean Janzen	Read Replies (1) \| Respond to of 792

To all, This site contains public company documents. MBI's prospectus reveals some interesting information. sedar.com type in "micrologix" in "company name" and click "search" then click on "Final long form prospectus - English" dated Oct27 1999 The following paragraph confirms Larry's statement that MBI is conducting phase II on MBI 226 (CVC indication) on a small budget. "Approximately $6 million of the net proceeds of the offering will be used to fund the Company's preclinical and clinical development programs, including the Phase II clinical trial of MBI 226 for the prevention of catheter-related bloodstream infections, the preclinical and Phase I clinical trials for the Company's acne treatment and the undisclosed program referred to under the heading 'Business of Micrologix - Drug Candidates and Clinical Development Programs ' Other Programs'. Approximately $4.7 million of the net proceeds of the offering will be used for ongoing research and development activities and the balance of approximately $3 million will be used for general corporate purposes." Could we see phase III (CVC indication) start before the end of Q1/00? "As a result of being granted fast track status, Micrologix has worked closely with the FDA to design a clinical development program for MBI 226 that eliminates the requirement for traditional Phase II efficacy studies. Provided that MBI 226 shows an acceptable safety profile in Phase II, Micrologix will be permitted to proceed directly to pivotal Phase III studies. Micrologix anticipates completing Phase II in the first quarter of 2000 and is currently discussing the design of the Phase III clinical trial with the FDA." The following paragraph implies that MBI would, as Larry suggested, commercialize its own product unless a collaboration substantially accelerates product development and the likelihood of clinical and market success. Obviously, MBI doesn't have the resources to commercialize all its drugs. I suspect MBI could licenses out a few drugs, in early / mid development, to generate fund to bring a drug nearing commercialization to market. This strategy would minimize any dilution of the stock. "Establish drug development partnerships. Micrologix intends to commercialize its product candidates through strategic alliances with established pharmaceutical companies, if such collaborations would substantially accelerate product development and the likelihood of clinical and market success. The Company may seek to add value to some of its product candidates by taking them through advanced trials, thereby establishing efficacy in human patients, before negotiating the financial terms of such alliances. Corporate partnerships with established pharmaceutical companies will mitigate the risks inherent in carrying out clinical trials, making regulatory filings and ultimately marketing of the Company's products. It also will eliminate the significant investment and time needed to establish a marketing and sales force required to address the market." The next few years should be very interesting.