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Gold/Mining/Energy : Procyon Biopharma Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Tim Cruise who wrote (92)	2/28/1999 4:36:00 PM
From: thebeach	Read Replies (2) \| Respond to of 356

Hope you all enjoy this latest posting from Linear Capital's Site. It makes you wonder about the share price? Procyon BioPharma Inc. February 23, 1999 Dear Shareholder: During the quarter, Procyon has made several key steps toward achieving its development goals and building shareholder value. Three publications of its research papers in peer reviewed journals in recent months provides a very important validation of its technologies. In addition, additional resources have been retained to support the Company's efforts to out-license its two late-stage product opportunities. Powerful Anti-cancer Technologies The potential utility of Procyon BioPharma Inc.'s anticancer platform technologies were further validated this past quarter through the publication of the Company's pre-clinical research in peer reviewed journals. The Company continues to develop a lead antibody suitable for initiating human clinical trials in 2000 from its Antinuclear Autoantibody (ANA) technology. ANAs bind specifically to multiple cancer cell types, strongly enhancing the immune response to cancer cells. In a paper published in Cancer Detection & Prevention Procyon's Drs. Iakoubov and Torchilin demonstrate that chemotherapeutic agents cause increased binding of the Company's proprietary anticancer antibodies (ANA) to cancer cells. This finding supports both the proposed mechanism by which ANAs target cancer and offer the opportunity for these antibodies to work synergistically with many commonly used cancer therapies. We continue our pre-clinical studies on ANAs and anticipate filing an Investigational New Drug (IND) application later this year and commencing human clinical trials in 2000 In the PSP94 program, the Company's research indicates that PSP94 binds to specific receptors on the surface of cancerous prostate cells and inhibits the growth of tumors. In a study published in The Journal of Urology, Procyon's researchers show that the presence of PSP94 increases the number of receptors on prostate cancer cells, therefore offering the opportunity for therapeutic and endogenous PSP94 to more potently inhibit the growth of prostate cancer. In another paper published in The Prostate, PSP94 was shown to inhibit the growth of PC3 cell line in vitro and in vivo. Daily injections of PSP94 inhibited PC3 xenograft tumour growth by 50-60%. In in-vitro experiments, the mechanism of PSP94's regulation of prostate cancer was determined to be the induction of programmed cell death (apoptosis). Therefore, PSP94 represents a novel, apoptosis-based, anti-tumour agent for the treatment of androgen-independent human prostate cancer. The Company continues to make progress on its PSP94 development plans. The Company remains on track to file an IND towards the middle of this year and anticipates initiating human clinical trials later in 1999. Late Stage Products with Partnering Opportunities Procyon is committed to out-licensing FIBROSTAT™, a topical cream for the management of scars following surgery or burns, to a commercial partner who will complete final development and commercialization of the product. The Company is also focused on out-licensing COLOPATH™, a test card that is being developed as a highly sensitive and minimally invasive screening test for colorectal cancer. Because of the importance of these out-licensing initiatives, the Company has recently retained the services of consultants to complement its own resources in these areas. With this additional assistance the Company believes it can move forward expeditiously to complete appropriate out-licensing and co-development agreements. Financial Highlights For the six months ended December 31, 1998, Procyon incurred a net loss of $1,270,048 compared to $927,376 for the same period in 1997. The increased loss is directly attributable to the Company's increased research & development efforts. The Company will require to complete additional financings in 1999 to fund its ongoing activities. A number of alternative strategies are being evaluated and we expect to have plans in place in the coming weeks. Given the current share price, management's challenge is to put in place a financing package to fund ongoing operations while minimizing dilution, if any, to existing shareholders. Outlook Procyon BioPharma will continue to concentrate its resources on advancing its two anti-cancer platform technologies. At the same time, considerable effort will be expended on developing corporate partnerships to commercialize the Company's late stage products. The Company recognizes the importance of demonstrating its progress through the achievement of critical milestones and maintaining a focus on increasing shareholder value. Procyon will keep you informed in the coming months as these goals are reached. Sincerely, Chandra J. Panchal, Ph.D., Douglas S. Alexander President and Chief Executive Officer Senior Vice President, Finance & Chief Financial Officer