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Gold/Mining/Energy : Procyon Biopharma Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Tim Cruise who wrote (250)	3/15/2000 10:44:00 PM
From: thebeach	Read Replies (1) \| Respond to of 356

Article from another website from Golden Capital: Since our initiating coverage on Procyon BioPharma in December 1999, its stock price climbed from $1.00 to a high of around $4 and is now back down to $3. Several milestones were achieved during the last quarter which helped lift the stock price. Procyon has out-licensed FIBROSTAT, a scar treatment product in late Phase II. Biovail acquired the Canadian rights to FIBROSTAT by committing to finance $1.5 million for the completion of Phase III trials, followed by application for approval by Canadian Therapeutics Products Program, which is expected to take place in 2002. Upon approval by CTPP, Procyon will receive a payment of C$1 million in addition to royalty fees on sales. FIBROSTAT will be marketed by Crystaal, the Canadian marketing division of Biovail, and is expected to be on the market by Q1-2003. The Canadian market for FIBROSTAT is estimated at $25 million and worldwide market at over $500 million. Procyon is currently in negotiations with licensing partners in the U.S. and Europe. COLOPATH, a late-stage product for screening colorectal pathology, including cancer, is currently undergoing clinical trials. COLOPATH can be sold as a Class 2 medical device in Canada for monitoring purposes, but Procyon believes there is a bigger market for COLOPATH as a screening device to screen general asymptomatic population for colorectal cancer. Clinical evaluation of COLOPATH is expected to conclude in Canada by Q3-2000. Procyon is currently in negotiations with potential partners to out-license COLOPATH in North America, with a target launch date of Q1-2001. COLOPATH has received U.S., Australian, South African patents and was recently allowed a European patent. The target market comprises of population over age 50, and is projected at $100 million in North America with a penetration rate of 20%. Last quarter Procyon completed most of the pre-clinical studies on its Prostate Secretory Protein (PSP94), a prostate cancer therapy that inhibits tumour growth by triggering apoptosis (cell suicide). Procyon expects to file an IND later with the FDA and CTPP to conduct Phase I (human clinical trials) commencing in Q4-2000. Phase II is expected to begin six months following Phase I, which will be mid-2001. Procyon completed two phases of private placement totalling $3 million. Two key investment institutions in Quebec's financial community invested in Procyon, they are T2C2 and Innovatech du Grand Montreal. The funds raised will be used for R&D and general expenses. Procyon is arranging a $20 million private placement expected to close by the end of March. Upon completion of the licensing agreements for FIBROSTAT in the U.S. and Europe, as well as for COLOPATH in North America, it is anticipated that the revenues from licensing fees and royalty on sales will increase in the coming years. We are sticking to our original target of about $4-5 on a fully licensed basis.