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Biotech / Medical : Cell Pathways (CLPA) -- Ignore unavailable to you. Want to Upgrade?

To: bob who wrote (47)	11/21/1998 10:16:00 AM
From: bob	Read Replies (1) \| Respond to of 566

ALL, Some mixed comments from street.com today: Pathways, North American Vaccine, Ergo, Geron By Jesse Eisinger Staff Reporter 11/19/98 11:26 AM ET What's up with Cell Pathways (CLPA:Nasdaq)? Not the stock, or at least not as much as it was just a few days ago. The company made an unusual debut, going public Nov. 4 after being folded into a public shell company, the former maker of computer video equipment and software called Tseng Labs. The stock, trading in the low single-digits when Cell Pathways' road show began, jumped to nearly 20 earlier this month, giving Cell Pathways a $500 million market cap, which is high for a biotech without a product on the market. The stock then saw a sharp pullback as short-sellers and biotech types mingled at various scientific meetings over the last couple of weeks. But Wednesday it was up and running again, up 2 1/8 to 12. That still gives it a healthy market cap of about $300 million. And for what? Prevatac, a drug to reduce polyps associated with a genetic disease that is a precursor to colon cancer. Patients suffering from severe cases of the disease often must have their intestines removed because they have hundreds of these polyps. The drug, which is supposed to improve, though not cure, the condition, has orphan drug status from the Food and Drug Administration, a designation that confers protection from competition upon companies that develop rare disease treatments. (That means that the initial market for the drug is small.) The drug has fast-track status, meaning it will get reviewed in six months. The company plans to finish its Phase III trial in January and file with the agency by the first half of next year for approval. The company also is developing the drug for the much larger markets for the prevention of recurrence of breast cancer and prostate cancer. Prevatac is a "modified" generic drug member of the class of nonsteroidal anti-inflammatory drugs that are widely used, according to a company spokesman. Other anti-inflammatory drugs are coming on the market, including the new COX-2 inhibitors, which work as well as the older anti-inflammatories, but are easier on the gastrointestinal tract. "You could take the new COX-2. Probably if they modify those, it'll work for the disease, too," says one New York hedge fund manager who is short the stock. The Cell Pathways spokesman says that the chief scientific officer, who could speak specifically about Prevatac, was unavailable until next week. According to the spokesman, officers and directors who control 5.6 million shares can sell the stock 180 days from when Cell Pathways started trading. That's a big overhang in a company whose shares outstanding total about 25 million, according to the short-seller. Clearly the pathway to Prevatac approval won't be smooth.