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Biotech / Medical : BJCT-BIOJECT-needle less injection product -- Ignore unavailable to you. Want to Upgrade?

To: GREG FINLEY who wrote (310)	9/11/1998 2:28:00 AM
From: Marc Kahn	Read Replies (1) \| Respond to of 534

Here are some things that I learned at Bioject's annual meeting, in no particular order: The Hoffman LaRoche 1.5cc device is currently before the FDA on a 510K application for approval as an equivalent device. After approval is granted for the device, the anti-infective drug (already approved) and the Biojector must be submitted to the FDA (again) on a combined application, to be marketed together. Product launch is expected in 1999. The vial adapter is finding markets independent of the Biojector. Some multiple sclerosis patients are using it to mix their 2 part medicine prior to a needle injection. Apparently the needles get dulled by using them to mix the medicine, making for an uncomfortable needle stick. Merck's $1.5M upfront payment is actually 2 equal payments of $.75M. The first has already been received and the second will be received next quarter. The company currently has $3.5M cash on hand. The company is currently actively negotiating the long term agreement with Merck. Payments to the company may be in the form of licensing fees, product purchases, and/or royalty payments. One of Merck's concerns is that Bioject will be able to provide them with enough injectors/ampules! There are lots of discussions taking place with other pharmaceutical companies. Jim stated that at least 2 more agreements are possible in the next year. The reduction in marketing efforts of the Biojector system will result in a decrease of revenue from product sales, but the reduced expense will mean less loss per share. Military sales efforts are proceeding nicely, with the Biojector system currently being used in some installations, and being evaluated in others. The school vaccination market is being pursued in Chicago, Detroit, and other cities. The Center for Disease Control is funding a study to be done this fall at the University of Washington. This study will document levels of acquired immunity comparing flu shots delivered by needle syringe and by jet injection. The hypothesis of the study is that jet injection is a more effective delivery method. Jim stated that people older than 65 have only a 50/50 chance of acquiring flu immunity with a needle injection. If it can be shown that jet injection is more effective, it may be possible to use less vaccine per shot, and innoculate more people more reliably, especially the seniors. In a separate discussion, someone suggested that jet injection may prove to provide immunity faster (4 days as opposed to 2 weeks using a needle). I have long suspected that jet injection is an enabling technology for DNA based vaccines; but the implication here is that it is an enabling technology for all vaccines. The glucose monitoring joint venture with Elan has just hired a permanent CEO / Chairman, within the past few days. Jim stated that prospects are very good for this technology. Treatment of diabetes and its complications consumes 15% of health care spending in our country. It is unpleasant for patients to draw blood 4 times a day to monitor their glucose levels, therefore compliance is low. The minimally invasive GlucoTrax system provides continuous accurate readings and greater convenience which will lead to greater compliance. Daily cost is expected to be $3.00, about what 4 finger stick tests cost today. This technology has the potential to significantly reduce life threatening and expensive complications of diabetes, and is therefore economically compelling for insurers to fund the monitoring. Currently, they are gathering data about the device. Ultimately, they intend to seek a partner to help fund further development, and scheduled payments to Elan. Jim mentioned that Becton Dickinson paid $30M to Cygnus, in a marketing partnership for their similar device. Jim didn't mention that BD has subsequently left that partnership, and the future of the Cygnus device is very questionable. One of the downsides of Cygnus's device is the need to draw blood daily to test and calibrate the device. Jim said that the GlucoTrax does not require that kind of calibration. I talked to quite a few folks from Bioject, at various levels. While they were appropriately reluctant to reveal too much inside information, they are all excited about developments at the company. We have very good and dedicated people working for us. I remain convinced that shares of Bioject at the current value, are extremely underpriced. Marc Kahn