here is the entire thing here is a big group support analystgroup.com initiates its coverage of HIV-VAC, Inc. (OTC BB: HIVC) with a "Strong Buy" rating
HIV-VAC, Inc. (OTC BB: HIVC)
Recent Price: $0.34 52 Week Range: $0.125 to $3.125 Outstanding shares: 31.9 million Float: 7.93 million Market Cap: $10.8 million 2001 Projected Revenues: $4.375 million 2001 Projected Pre-Tax Loss: 1.468 millin 2002 Projected Revenues: $142.8 million 2002 Projected Pre-Tax Income: $63.1 million Stock Rating: Strong Buy (Speculative) 12-24 Month Target Price: $4 to $5 Company Website: hivvac.com Contact Person: Domenic Franco, 877-847-7719
INVESTMENT SUMMARY
- We rate HIV-VAC (OTCBB: HIVC) a "strong buy" for speculative investors. HIVC is developing an HIV Intracellular Vaccine that provides the necessary antibodies to combat HIV. It has the potential to moderate disease progression in already infected persons as well as protect again initial infection. The total number of people in the HIV high-risk category comprises over 25% of the world's population. These are people who have not yet contracted HIV, but will most likely do so during their lifetime. This represents a potential marketplace of over 1.5 billion. Add in the millions of HIV sufferers who could benefit from treatment for their existing infection, the total potential marketplace for this vaccine is staggering.
- The United Nations estimates that there are currently 33.6 million people infected worldwide with the AIDS virus. The disease is spreading at a rate of 10,000 people each day. It is estimated that the number of people infected with the AIDS virus by the end of the year 2000 will be 55 million. HIV/AIDS caused 2.6 million deaths worldwide in 1999 and over 16.3 million cumulative number of deaths due to HIV/AIDS has been recorded, according to World Health Organization. This is an epidemic of global proportions. No country or economic group is immune. AIDS is threatening to undo decades of development in Africa, and continues to menace Russia, Eastern Europe and Asia. AIDS is already the fourth-leading cause of death in the world and the leading cause in sub-Saharan Africa. Convinced that the global spread of AIDS is reaching catastrophic dimensions, the Clinton administration has formally designated the disease for the first time as a threat to U.S. national security that could topple foreign governments, touch off ethnic wars and undo decades of work in building free-market democracies abroad.
- Current treatment consists of a standard drug "cocktails" that cost over $10,000 per year, per person. To treat all America's HIV patients with this regimen would cost over $5.4 billion. This treatment does not cure the disease, if only holds it in check. Lives hand in the balance, and America's health care system alone expects to add in excess of $6.2 billion in lifetime treatment costs alone to the nation's health care bill. Sales of anti-HIV drugs increased to more than $3 billion last year and could reach $6 billion in coming years worldwide.
- Many scientists, universities, institutions and organizations have been working on a cure for the HIV virus for over 10 years. Most of these studies have resulted in traditional approaches using old technology that have shown little promise in truly providing a solution to this worldwide epidemic. Dr. Skinner and his research team at the University of Birmingham UK have developed a new approach to the HIV problem through a technique called inactive intracellular sub-unit candidate preparation. What makes this vaccine different, and more effective than other is the mutating HIV virus cannot escape the immunization properties the Skinner vaccine provides. This technology has already been proven in clinical trials with herpes genitalis. The HIV vaccine has been satisfactorily tested on animals, and the vaccine is believed to act as both a protective agent against the HIV virus and has potential to modulate the progression of HIV disease.
- When viruses infect cells, they make new virus particles within the cell - the "intracellular" phase - and the newly formed virus particles leave the cell and become free - the "extracellular" phase - before they goon to infect new cells. During the intracellular phase, viruses make some process but are not incorporated in the new viruses - the "regulatory" protein and various intermediate proteins. The intracellular vaccine NFU.Ac.HIV(JM) harvests all the proteins that are produced in the intracellular phase, not just the ones contained in the virus articles, and presents them in their natural configurations. The vaccine is manufactured by detergent, formaldehyde and acetone treatment of HIV-1 infected cells; the newly formed viruses are stripped of their envelope proteins, the virus particles are then discarded and the final preparation is a mixture of virus and cell proteins. The combination of detergent, formaldehyde and acetone, ensures that the vaccine is inactivated so that it contains the important HIV-1 glycoproteins, core proteins, regulatory and intermediate proteins but no infectious HIV-1 and it appears to be non toxic. The method of preparation has the advantage that it can easily accommodate different strains of HIV-1.
- OK, HIVC might have something that could be proven to be a major medical breakthrough in history. Now question is that how much the stock should be valued in the market place. As far as we know, only one public company is doing something pretty like what HIVC does. It's VAXGEN, INC. (Nasdaq: VXGN). VXGN is developing preventive vaccines for worldwide use against HIV. Last year, VXGN has no sales with a loss over $24 million, but its stock commands a market cap at $252 million. OTCBB stocks are often valued at half of its peers on the NASADQ. Thus, this alone could give HIVC a fair market valuation at $4 per share, not to mention HIVC's vaccines which might be proven to be more effective than VXGN's. Wow! Don't forget its potential EPS at $1.20 per share as projected by the company in 2002. Shall we make another target price for the stock on the basis of this analysis? No, we are not going to give! We stick with our target price at $4 to $5! We are conservative, this is how our subscribers could benefit from our style in this risky OTCBB market filling with hype, bash, naked manipulation and short, not to mention all kinds of emotion!
- Last March, the stock has been traded as high as $3.25 per share. Since then, the stock has been substantially declining to the current level. The stock has been traded extremely active in the past tens days. A rumor is circulating now about a possible buyout by a major pharmaceutical company. Also, we are hearing some major developments are in the works and should be announced shortly. If one of them or both are are true, the stock could be well over $5 before investors could grab any shares.
- The company is projecting impressive growth rates for next two years, but we believe they are reasonable considering the beginning of a pandemic the likes which we have not seen in this century, and in the end will probably never have seen in history. Recently, the Company has received funding to begin the final stages of laboratory testing for its HIV/AIDS vaccine that could prove to be both a preventative and therapeutic agent. The trials will be conducted at the Russia Aids Centre and are expected to be completed within 9 to 12 months. Phase I and II human trials will commence once laboratory trials are completed. Further, the company announced recently that it is working towards initiating human trials in one or more African countries where HIV/AIDS has reached epidemic proportions. These new trials in Africa would compliment trials currently underway in Russia, and will also be undertaken in conjunction with a major American University. We believe the vaccines have great chance to be proven effective again HIV/AIDS. Hence, the stock is rated "strong buy" for speculative investors.
THE COMPANY PROFILE
HIV-VAC, Inc. is developing the Skinner HIV-VAC AIDS vaccine which is based on a new and very unique approach to neutralizing the AIDS virus. Unlike many other AIDS vaccines under development, the Company believes that the Skinner vaccine has the potential to be effective with the AIDS virus' many mutant forms. This technology is based on a unique intracellular vaccine technology proven in clinical trials with herpes genitalis and pre-clinical research into cytomegalovirus and equine herpes vaccines. This has been under development by Dr. Skinner and his team for the past 10 years at the University of Birmingham, United Kingdom. --------------------------------------------------------------- Copyright 2000, analystgroup.com. All rights reserved. Persons may reprint or copy any portion of this publication, provided any reprint or copy is accompanied by our web address (http://www.analystgroup.com).
analystgroup.com initiates its coverage of HIV-VAC, Inc. (OTC BB: HIVC) with a "Strong Buy" rating
HIV-VAC, Inc. (OTC BB: HIVC)
Recent Price: $0.34 52 Week Range: $0.125 to $3.125 Outstanding shares: 31.9 million Float: 7.93 million Market Cap: $10.8 million 2001 Projected Revenues: $4.375 million 2001 Projected Pre-Tax Loss: 1.468 millin 2002 Projected Revenues: $142.8 million 2002 Projected Pre-Tax Income: $63.1 million Stock Rating: Strong Buy (Speculative) 12-24 Month Target Price: $4 to $5 Company Website: hivvac.com Contact Person: Domenic Franco, 877-847-7719
INVESTMENT SUMMARY
- We rate HIV-VAC (OTCBB: HIVC) a "strong buy" for speculative investors. HIVC is developing an HIV Intracellular Vaccine that provides the necessary antibodies to combat HIV. It has the potential to moderate disease progression in already infected persons as well as protect again initial infection. The total number of people in the HIV high-risk category comprises over 25% of the world's population. These are people who have not yet contracted HIV, but will most likely do so during their lifetime. This represents a potential marketplace of over 1.5 billion. Add in the millions of HIV sufferers who could benefit from treatment for their existing infection, the total potential marketplace for this vaccine is staggering.
- The United Nations estimates that there are currently 33.6 million people infected worldwide with the AIDS virus. The disease is spreading at a rate of 10,000 people each day. It is estimated that the number of people infected with the AIDS virus by the end of the year 2000 will be 55 million. HIV/AIDS caused 2.6 million deaths worldwide in 1999 and over 16.3 million cumulative number of deaths due to HIV/AIDS has been recorded, according to World Health Organization. This is an epidemic of global proportions. No country or economic group is immune. AIDS is threatening to undo decades of development in Africa, and continues to menace Russia, Eastern Europe and Asia. AIDS is already the fourth-leading cause of death in the world and the leading cause in sub-Saharan Africa. Convinced that the global spread of AIDS is reaching catastrophic dimensions, the Clinton administration has formally designated the disease for the first time as a threat to U.S. national security that could topple foreign governments, touch off ethnic wars and undo decades of work in building free-market democracies abroad.
- Current treatment consists of a standard drug "cocktails" that cost over $10,000 per year, per person. To treat all America's HIV patients with this regimen would cost over $5.4 billion. This treatment does not cure the disease, if only holds it in check. Lives hand in the balance, and America's health care system alone expects to add in excess of $6.2 billion in lifetime treatment costs alone to the nation's health care bill. Sales of anti-HIV drugs increased to more than $3 billion last year and could reach $6 billion in coming years worldwide.
- Many scientists, universities, institutions and organizations have been working on a cure for the HIV virus for over 10 years. Most of these studies have resulted in traditional approaches using old technology that have shown little promise in truly providing a solution to this worldwide epidemic. Dr. Skinner and his research team at the University of Birmingham UK have developed a new approach to the HIV problem through a technique called inactive intracellular sub-unit candidate preparation. What makes this vaccine different, and more effective than other is the mutating HIV virus cannot escape the immunization properties the Skinner vaccine provides. This technology has already been proven in clinical trials with herpes genitalis. The HIV vaccine has been satisfactorily tested on animals, and the vaccine is believed to act as both a protective agent against the HIV virus and has potential to modulate the progression of HIV disease.
- When viruses infect cells, they make new virus particles within the cell - the "intracellular" phase - and the newly formed virus particles leave the cell and become free - the "extracellular" phase - before they goon to infect new cells. During the intracellular phase, viruses make some process but are not incorporated in the new viruses - the "regulatory" protein and various intermediate proteins. The intracellular vaccine NFU.Ac.HIV(JM) harvests all the proteins that are produced in the intracellular phase, not just the ones contained in the virus articles, and presents them in their natural configurations. The vaccine is manufactured by detergent, formaldehyde and acetone treatment of HIV-1 infected cells; the newly formed viruses are stripped of their envelope proteins, the virus particles are then discarded and the final preparation is a mixture of virus and cell proteins. The combination of detergent, formaldehyde and acetone, ensures that the vaccine is inactivated so that it contains the important HIV-1 glycoproteins, core proteins, regulatory and intermediate proteins but no infectious HIV-1 and it appears to be non toxic. The method of preparation has the advantage that it can easily accommodate different strains of HIV-1.
- OK, HIVC might have something that could be proven to be a major medical breakthrough in history. Now question is that how much the stock should be valued in the market place. As far as we know, only one public company is doing something pretty like what HIVC does. It's VAXGEN, INC. (Nasdaq: VXGN). VXGN is developing preventive vaccines for worldwide use against HIV. Last year, VXGN has no sales with a loss over $24 million, but its stock commands a market cap at $252 million. OTCBB stocks are often valued at half of its peers on the NASADQ. Thus, this alone could give HIVC a fair market valuation at $4 per share, not to mention HIVC's vaccines which might be proven to be more effective than VXGN's. Wow! Don't forget its potential EPS at $1.20 per share as projected by the company in 2002. Shall we make another target price for the stock on the basis of this analysis? No, we are not going to give! We stick with our target price at $4 to $5! We are conservative, this is how our subscribers could benefit from our style in this risky OTCBB market filling with hype, bash, naked manipulation and short, not to mention all kinds of emotion!
- Last March, the stock has been traded as high as $3.25 per share. Since then, the stock has been substantially declining to the current level. The stock has been traded extremely active in the past tens days. A rumor is circulating now about a possible buyout by a major pharmaceutical company. Also, we are hearing some major developments are in the works and should be announced shortly. If one of them or both are are true, the stock could be well over $5 before investors could grab any shares.
- The company is projecting impressive growth rates for next two years, but we believe they are reasonable considering the beginning of a pandemic the likes which we have not seen in this century, and in the end will probably never have seen in history. Recently, the Company has received funding to begin the final stages of laboratory testing for its HIV/AIDS vaccine that could prove to be both a preventative and therapeutic agent. The trials will be conducted at the Russia Aids Centre and are expected to be completed within 9 to 12 months. Phase I and II human trials will commence once laboratory trials are completed. Further, the company announced recently that it is working towards initiating human trials in one or more African countries where HIV/AIDS has reached epidemic proportions. These new trials in Africa would compliment trials currently underway in Russia, and will also be undertaken in conjunction with a major American University. We believe the vaccines have great chance to be proven effective again HIV/AIDS. Hence, the stock is rated "strong buy" for speculative investors.
THE COMPANY PROFILE
HIV-VAC, Inc. is developing the Skinner HIV-VAC AIDS vaccine which is based on a new and very unique approach to neutralizing the AIDS virus. Unlike many other AIDS vaccines under development, the Company believes that the Skinner vaccine has the potential to be effective with the AIDS virus' many mutant forms. This technology is based on a unique intracellular vaccine technology proven in clinical trials with herpes genitalis and pre-clinical research into cytomegalovirus and equine herpes vaccines. This has been under development by Dr. Skinner and his team for the past 10 years at the University of Birmingham, United Kingdom. --------------------------------------------------------------- Copyright 2000, analystgroup.com. All rights reserved. Persons may reprint or copy any portion of this publication, provided any reprint or copy is accompanied by our web address (http://www.analystgroup.com). |