Bioprogress is a stock I have been in and out of quite a few times since it floated in May but not much mention here on the Investors' Room. Does anyone else follow this stock. I see it is up 1.5p today and a few good buyers seem to have appeared.

this one has caught the attention of many other investors (advfn board etc ) but has not really attracted interest on this board as yet.. i copy a article on this from below.. which explains more about this company .. the more you look into this ..the more you believe in it.. pse dyor . i hold some of these



BIOPROGRESS (BPRG)(55p) -A LICENCE TO PRINT MONEY?

The richest man in England is as far as I know, Hans Rausing. A great european philanthropist with a low profile.

From inside the packaging machinery industry, and as far back as 1965 one could see that Hans Rausing's business Tetrapak would be a world beater. But why? What has this to do with Bioprogress?

Develope a new type of package which fulfils a universal need, and make sure its core is patentable. Design a machine to produce it and patent as much of that as possible. Then charge a royalty on every inch or gram of packaging material consumed by that machine.

In those days Hans Rausing's company took something like 2p per package for every hermetic carton which his machine formed round a vertical tube whilst still attached to the flat reel. Today fruit juice, milk, and many other products are packaged like this all over the world and noone satisfactorily circumvented the patents though manyb will have lapsed. That is why HR has left behind hundreds of millions of pounds worth of charitable foundations and trusts, scholarships, colleges. His benefactions give away tens of millions every year.


Patent cover

BPRG floated on AIM 22 May this year, is just entering the commercialisation phase of its own technology, protected by 15 patents, with 27 applied for, in the field of water soluble and bio-degradable films. Such protection extends to the formulation and coating of film(s), means for processing such films, combination of such films into composite products, and, machinery and processing techniques for their construction and application. The Company's current library of films extends to more than thirty types with extensive individual characteristics ranging from being resistant to blood but soluble in cold water, to multi-layer films that encapsulate liquids and or powders but which dissolve at selectable times and sites within the body.

Some market notes

ECO detergents have been around in a muted way for a few years but most biodegradable products in supermarkets require the sacrifice of a small price differential which environmentally insensitive shoppers will not pay. Although environmental concerns potentially create a huge demand for packages which eventually disappear, rollout of such films by the likes of Symphony Plastics, the UK leader, has been slow because of the premium cost, which has recently been resolved for biodegradeable polythene but is for the moment largely confined to waste sacks. BPRG's main product XGel will almost certainly have a very much quicker take-off. Provided that most of the patents hold, it is easy to imagine the company as one of the great performers of the next decade. XGel can be used to replace gelatine in the manufacture of capsules for oral dose pharmaceuticals, vitamins, minerals and food supplements, and the machinery to do this is designed and patented by BGPR. The US market alone for vitamins and supplements exceeds $10 billion. Several investors have noted the factor in common with Tetrapak

This market is world-wide and massive. BPRG's aim is to retire the use of gelatin entirely from the packaging world. Not only are there nearly two billion consumers Moslem, Hindu, Jewish , and all the world's vegetarians, who will be mightily relieved that they no longer need to ingest animal material rendered down from pigs and holy cows. The industrialised world will also be relieved to see that a potential vehicle for BSE - and more to the point - for the horrifying and disgusting vCJD disease - can now be eradicated.

Striking advances in productivity

Production engineers would be glad to see gelatine removed from the production process. The single, compact XGel machine is a vast improvement over the lengthy, multi-step manufacturing process currently required for gelatin. The slow warming, and the meticulous regulation of viscosity to control flow and accurate dosage require expensive floor space and capital investment in vats, mixing tanks, and critical temperature-control machinery. And a one hour drying time for XGel capsules saves on the 2 days required to dry gelatine - again economising on floor space and improving production flow, therefore operating efficiency. With most of the capital-intensive infrastructure eliminated, the XGel Film System makes in-house production a highly flexible and cost-effective reality. It is no surprise that despite the investment, over forty pharmaceutical factories have placed enquiries with BPRG

The new XGel machine has been used to make over 62,000 capsules per hour - towards the lower end of its full range, but still much faster than existing equipment. Even at this speed it is consuming 1m worth of XGel film per year.

A risk reducing endorsement

A first batch of fifty are envisaged and will be built under exclusive licence by the world leading pharmaceutical engineers Harro Hoefliger. That company employs around 350 staff at Allmersbach N E of Stuttgart in an area thick with small and medium size precision machinery builders, also the home of Daimler Benz, Werner und Pfleiderer, and Robert Bosch. HH is the nephew of Consul Hoefliger the talented and tenacious Schwab who built Hoefliger and Karg into one of the world's great packaging machinery companies before selling out in old age in the formation of Robert Bosch Verpackungsmaschinen.

So the licence to Harro Hoefliger is not just another business deal bringing in licence income. That HH should consider building and developing fifty of the machines is an endorsement of the XGel material and process, its fulfilment of real and substantial needs, and of the economics. These are all risk factors which would weigh down the share price during the next six months, but are now substantially underwritten by the calibre of the licensee. It is relevant that Harro Hofliger were the first supplier ever to receive a comparable award from Glaxo Smith Kline for ten years of outstanding collaboration and innovation. It is therefore only a small step to imagine that Glaxo SK has played a part in building that confidence.

Considerations

I hope you now see the connection with Tetrapak, Hans Rausing's wealth, and the potential for BPRG. It depends on just HOW MUCH more economical are those non gelatine packs. The base material is more expensive than gelatine powder, but the manufacturing efficiency is very highly improved. Much of that advantage can be cashed in by the company provided it can protect and keep that relationship between machine and consumable; and protect its uniqueness. Current global suppliers of the soft gelatine capsules like RP Scherer Inc. and Banner Pharmacaps Inc, are not going to throw up their hands and vacate the market. Pharmagel have an urgent need to hold on to the market for capsule filling machinery. Perhaps BPRG is already negotiating to license such suppliers and turn them into collaborators rather than see them metamorphose into dangerous plagiarisers, patent infringers and competitors. BPRG say that processing XGel is tricky and only four convertors have the technical capability to supply. If true that will also support the share price.

Five Versions
In all BPRG have developed five versions of the XGel film system:

* NIM - for production of soft capsules for non -ingestible applications
* Swallow - for production of liquid filled ingestible capsules
* NRobe - for production of lightly compacted coated tablets
* TabletWrap - for replacing the coating processes employed by the production of tablets
* Septum - for the encapsulation of two non-compatible active ingredients in the same capsule separated by a membrane of XGel film

Reference sites:
Agreements have already been made with world-class companies :

* Peter Black Healthcare (the UK's leading vitamins, minerals and supplements manufacturer) took the first Xgel machine system last autumn in a 1m deal to cover machine and services with an additional contract for film. On 19 August it was announced that the firm has now taken delivery of a pilot scale TABWRAP machine. Another had just been despatched to a major US pharmaceutical company.

*The Spanish-based pharmaceutical company Farmasierra is just taking delivery of the first pilot scale NROBE machine which covers tablets with ingestible film.

*American based Bristol-Myers Squibb has signed for XGel Film System development and application trials.

* Procter and Gamble and Nestlhave agreements relating to innovative uses for the film.

* Boots Plc has an exclusive agreement for an undisclosed application, has production machines and is paying for all its specific development needs whilst leaving the IP with BPRG.

IP in non ingestible applications

BPRG also has important non-ingestible film developments: the world's most environmentally friendly feminine hygiene products the first to be awarded Canada's prestigious EcoLogo;, the first fully biodegradable and flushable ostomy system for the healthcare market; and a new generation of paintballs for the fast growing leisure market. BPRG has already developed and licensed its patented flushable and biodegradable ostomy pouch to Bristol Myers ConvaTec, the global industry leader in this market. According to industry estimates, the market for disposable ostomy pouches has a global sales value of $1 billion annually

Interim report
This week's interim refers to just six week's trading during which expenses of 411,000 were encurred. At flotation net cash left after expenses was3.5m Cash at the start of H2 was 2,657,000. Each of the contracts so far signed are for around 1m each so the outlook is hopeful that H2 will straight off be cash positive.

Final thoughts
Whilst considering all the above just imagine the demand in the Moslem and Indian worlds for animal and cow-free packaging in pharmaceuticals.

And to sum up just imagine the demand in established pharma companies for a system which eliminates the slow heating and tempering of gelatine before use, which avoids two days waiting for the packs to harden, drastically reduces floor space, and uses machines of much higher speed.

And who wants the smallest risk of that filthy vCJD disease.

Today's Constant Gainers and Losers
Kam Patel

MMO2, BioProgress, Lookers, Tullow Oil , Sutton Harbour, Cobra, Anite Abacus, Total Systems, 3DM Worldwide, Iomart, Image Scan, GW Pharma in focus

...............

Notable constant gainers over four days include BioProgress, which has put on 13.6% to 71p. On 24 November it announced signing a letter of intent to form a global strategic alliance with a major US pharmaceutical company. Bioprogress kept the name of the US company secret for commercial reasons, but said it is a global leader in the Over-the-Counter medicines product sector. It is anticipated that a formal agreement will be completed on or before January 31st 2004.

Just bought into these, look good for the future, does Stanelco pose a possible problem in the future?

AdieH
Yes-if Stanelco win the court case.rgds aj

...which seems unlikely, so much so that BPRG have managed to get very cheap insurance for the action - see the BPRG thread on ADVFN. In any event, it would only affect one of BPRG's 4 tablet forms, and not the one for which FMC look likely to be licensed (RNS 20/10.)

Looks good then aj

Thanks for the info chap, very happy chap at moment, already showing profit and only bought yest.

Placing and open offer 1 Offer Share for every 6 Existing Ordinary Shares @50p

http://www.uk-wire.com/cgi-bin/articles/200312030700417909S.html

What is the last date you can buy shares in bioprogress before you can qualify for the extra shares?

thanks

If you bought on the 1st you get them, if you bought after you dont. The record date was close of business 1/12/03.

Phew, just bought in on 1st, so I will be included ?

What happens if you are the holder on the 1st Dec but sold your shares on the 2nd?

The record date was close of business 1/12/03 so if you held or bought on that date you would still be eligible. If you havent heard from your broker in the next few days chase them.

There was an exhaustive debate on A.... about this. The consensus was that the ex- date is important. In other words, to qualify, you must have held shares after the close on 2nd December (not the record date 1st Dec). If you bought on 2nd Dec, you should be OK. If you sold on 2nd Dec, you won't qualify. Need to speak to your broker (they are also confused!) and the registrar needs informing about shares purchased on 2nd. That seems to be the view!!!

Got my letter from the share centre on Saturday. Think this is a brilliant growth prospect but usually dont bother with these issues. Think bones is right here.

cheers GF.

Yes, from what I now understand it the 2nd that is the important date.

If your not going to bother with the share issue GF I will happily take them off your hands @ 50p

Suprised that only 55% were taken up but the institutions were happy to take the rest

BioProgress PLC
29 December 2003

BioProgress plc (the 'Company')


Result of Extraordinary General Meeting
and
Take-up of the Placing and Open Offer of 14,559,444 Ordinary Shares of 1p each
at 50p per share


As set out in the circular dated 3 December 2003 (the 'Circular'), the special
resolution of the Company relating to the Placing and Open Offer was duly passed
by shareholders at the extraordinary general meeting held today at 11.00am.

The Company announces that the 1 for 6 Placing and Open Offer of 14,559,444 New
Ordinary Shares at 50p per share as detailed in the Circular closed at 3.00pm on
24 December 2003.

The Company received valid applications in respect of 8,071,117 Offer Shares
from Qualifying Shareholders, which represents an aggregate take-up of
approximately 55.4 per cent. In addition, each of the Directors who hold
Ordinary Shares and certain Shareholders irrevocably undertook not to take up
their entitlement of 2,519,354 Offer Shares and that entitlement was placed firm
with institutional and other investors. The balance of the Offer Shares not
taken up, being 3,968,973 Offer Shares have also been placed with institutional
investors.

It is expected that definitive share certificates in respect of the Offer Shares
will be dispatched to shareholders by 7 January 2004.

Application has been made for these Offer Shares to be admitted to the
Alternative Investment Market ('AIM'). Admission of the Offer Shares to AIM is
expected to become effective at 8.00 am on 31 December 2003.

Definitions used in the Circular apply in this announcement unless the context
otherwise requires.


For further information contact:


BioProgress plc 01354 655674



Graham Hind, Chief Executive

I have just had a friend remind me that the management agreed not to partake and that some overseas investers were not allowed to buy therefore actual take up was much higher than 55%

You bet you had a 'friend' remind you! 55% was the take up. The directors didn't fancy them and the yanks were lucky?