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Biotech / Medical : Sugen (SUGN) -- Ignore unavailable to you. Want to Upgrade?

To: Kevin Ponzo who wrote (140)	1/19/1998 12:12:00 AM
From: Miljenko Zuanic	Respond to of 550

Hi Kevin: Thanks for last and this post. I am not qualified to give anyone any advice, but I will give you one: "Forget all research analyst reports and company press release. Be your own analyst (it is your money), do very in-depth research and for all unknown answers contact company and ask for explanation" Regards the brain cancer trials do research at MEDLINE and NCI: ncbi.nlm.nih.gov cancernet.nci.nih.gov The latest review on brain cancer therapy and drug/trials: ncbi.nlm.nih.gov and one old article: ncbi.nlm.nih.gov Because you do tried your homework properly, and I hope that you will continue research, here are few note on SU101(brain trials) and SUGN burn rate, two points which will be important in next two year: 1. You are using SU101 current data as sure thing for PIII trials. ~40% response as stabilization of the disease condition in end-stage patients is good indication, but in PIII trials drug will be tested against best drug in market and in randomized closed trials for first relapsed malignant glioma patients.. So, clinical benefit has to be determined clearly and no way to extend current open trials data to new one. 2. SU101 at higher dose have side effects (check for Leflunomide metabolite arthritis PIII trials), and PDGF show down-regulation o the m2-muscarinic receptor gene expression in brain (in vitro study) which can produce (PDGFr inhibition should up-regulate m2-receptor) positive(?) terapeutic effects: intl.molpharm.org 3. SU101 will/is tested for PDGF positive refractory brain, ovarian, prostate, and non-small cancer, so market is subset and reduced. 4. Very important will be data from P I/II combined SU101 and BCNU trials. If drug efficiency is additive/synergistic to BCNU (SUGN promised by 97-end manuscripts from preclinical study, but data are still unknown) than clinicians will have more freedom for combine chemotherapy usage and market is significantly expanding (combination with other standard chemotherapy drugs). Regards the burn rate and SUGN cash reserve: 1. With private placement (17.5M) and secondary (32M) SUGN have ~85M (before expense for 4Q). 2. SUGN will finance seven SU101 trials (pediatric PI/II, three PII and two-three PIII trials. This will increase their burn rate (R&D expense) from 8.5M/Q to ~15-17M/Q. By this rate they will burn cash in 18 months. If you add expense for sales force forming in 1999, they will burn cash faster. In this time table they can't complete PIII trials. So, if one count on Mr. Stephen E.-F. business experience ( as I do) additional finance will come from SU101 sublicensing/world marketing partner. 3. The best will be that they have one partner for SU5416/SU101. Otherwise new round of financing is necessity (in 1999). This has nothing to do with stock price or company position. It is reality. They are not giving anything away. Partner will be for outside of the North Am. This will happen one day if drug works. I am expecting (3/4Q 98) collaboration on advance cancer program. Sooner the better. [EOM] mz