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Biotech / Medical : Stressgen (VSE: SSB) -- Ignore unavailable to you. Want to Upgrade?

To: Heat Shock who wrote (216)	10/25/2003 11:30:48 AM
From: Heat Shock	Read Replies (1) \| Respond to of 236

Following is the text of a stockhouse.ca post yesterday by BioBoffin (Post ID 6836229). The Korpoliniski he refers to is Stressgen's CEO. I agree with the points being made here about the potential of the Coval technology. To date, it has proven to be remarkably effective and safe, and the technology platform appears sufficiently robust to be transferred to a range of applications. Stressgen has developed a strong web of patent protection, so much so that others in the field are trying to challenge its broad patent coverage - but even if these challenges succeed, its specific patents will provide it with sufficient coverage to protect its IP position. I have heard Korpolinski on several occassions, and I believe that he is being very prudent when he says that they have enough cash to last until well into 2005. He is aware that he must be able to prove any such statement, without contingencies such as conditional milestone payments. So, while I am sure they would be more comfortable with a stronger cash position, I think their cash situation is probably stronger than the market gives them credit for. Look at Isotechnika, the other Canadian Roche partner, who negotiated their deal for about the same amount at about the same time. They have about $90 million in cash. I believe as Stressgen hits its milestones in 2004, Roche's money will flow to Stressgen more rapidly. I am also confident that the next tranche of RRP results will be better, as HSPE7 normally is more potent as time goes on. I also believe there is still an excellent chance that the updated results will be sufficently good to justify the FDA accelerating RRP approval. If and when they do, Roche and Stressgen will be able to supply the demand in quantity - for both RRP and off-label requirements for Genital Warts. Even if this optimistic scenario does not work out, the endgame of a very lucrative GW market will only take longer to achieve - but, given the effectiveness and safety of HSPE7, it is only a matter of time. Korpolinski is focussing on positioning this company for the long term, not worrying about day to day stock prices. The patience of all of us longs will ultimately be rewarded. Don't sweat the day to day fluctuations.