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Biotech / Medical : INCR -- Incara Pharmaceuticals -- Ignore unavailable to you. Want to Upgrade?

To: scaram(o)uche who wrote (168)	5/25/2002 3:07:56 AM
From: Arthur Radley	Read Replies (1) \| Respond to of 196

One analyst's comments on INCR.. "Incara Pharmaceuticals Corporation (NASDAQ: INCR) $0.41 Incara Pharmaceuticals Corporation, a company that is developing a series of catalytic antioxidants as treatments for protection of cells from damage occurring in stroke and cancer radiation therapy, and for protection of cells from transplant rejection, has certain not been exempt from the meltdown in the biotech sector. In fact, the company trades for a valuation that is close to its cash position, which ignores the value of its technology. As many as one million people in the United States have inflammatory bowel disease (IBD), a group of chronic, debilitating disorders of the intestines of unknown cause. IDB, comprised primarily of two diseases, ulcerative colitis (UC) and Crohn’s disease (CD), causes recurrent pain, cramps, fever, fatigue and diarrhea with or without bleeding. The company is currently involved in a phase 2/3 clinical trial of deligoparin, an ultra-low molecular weight heparin for the treatment of ulcerative colitis. The company has already enrolled 126 patients in the trial. In a recent clinical trial, patients with symptoms of active UC, who were receiving standard treatment, showed benefits with the addition of heparin. Incara’s compound, an ultra-low molecular weight heparin known as deligoparin, may prove to have several advantages over higher weight heparins, including a better safety and efficacy profile and greater convenience. Recently, Elan Corporation made a $3 million investment in Incara, suggesting a strong validation of the company’s potential of developing catalytic antioxidant compounds as adjunctive agents to cancer treatment. Radiation therapy is the most common treatment used for cancer. Approximately 50% of cancer patients, or 500,000 individuals, receive radiation therapy annually in the United States during the course of their cancer therapy. Radiation therapy produces damage to cancer cells but also hurts healthy cells, limiting the amount of radiation that can be administered and the overall success of treatment. In animal models of cancer therapy, Incara's antioxidants have provided protection to normal cells and do not protect cancer cells from radiation. Target applications include protecting the lining of the bladder in cervical cancer therapy, protecting the colon in prostate cancer therapy and protecting the lungs in breast and lung cancer therapy. The company also has a promising opportunity in liver disease. Incara is currently preparing an IND to be filed with the FDA to begin initial Phase I clinical trials for the transplantation of human liver cells as a treatment for adults with end-stage liver diseases. This year, approximately 30,000 people in the United States will die from chronic liver disease. Although decades of research have led to a better understanding of diseases that affect the liver, the only cure for many of these diseases is a liver transplant. There are only about 5,000 transplantable donor livers available in the United States each year, while there are approximately 18,000 patients currently on waiting lists for a liver transplant. Thus, there should be great demand for the company’s technology in this area. The stock has dropped in sympathy with the rest of the biotech sector, but we believe that investors have overreacted. At its current valuation, which is just above its 52-week low, it has a market capitalization of just $5 million, suggesting that investors are getting its technology for virtually free. Elan recently made an investment valuing the company’s stock at 72 cents per share. This means that you have the opportunity today to purchase stock in the company at 60% of the price that Elan did less than one week ago. Elan is a major biotech company, and has investment opportunities on a regular basis. We believe that this is an excellent example of a stock that has been oversold, and is likely to rebound to valuations closer to its 52-week high of $2.15