http://www.regentherapeutics.com/regen

Consider a company with a market cap of around 10 million which could well in the future be generating revenue well in excess of that figure every year. Interested then read on and DYOR on Regen Therapeutics.

For some time now I have been a shareholder of RGT who have been working with a patented product Colostrinin as a treatment for Alzheimers. Tests so far would seem to indicate that it is a success and they are currently refining a pharmaceutical product.

Meantime they are also pushing forward on the nutraceutical front as tests have shown positive results in respect of mild cognitive disorders (memory loss etc). Further research is being carried out regarding other major illnesses. As at mid 2007 a launch is scheduled in the US for Q4 and there are rumours of an earlier launch in Australia possibly imminent based on the fact that adverts are already starting to appear see:- http://www.quantumevolution.com.au/oscommerce/index.php

They have also acquired a contract research organisation which should mean that research money for clinical trials that had previously been spent will now be kept inside the group.

February 2006 has seen Regen acquire the rights, following a feasibility study, in respect of other uses for a well known drug (Zolpidem) that has undergone phase 2 clinical trials where results are expected around August 2007. The new use relates to the positive effects that have been seen when treating stroke victims with the drug. There has been a lot of press interest which a web search should reveal.

An interview with the chairman (Percy Lomax) in the summer of 2004 talked of a nutraceutical product producing royalty payments of 10% on a possible 100 million sales per annum. The pharmaceutical version which also requires a licensing partner will if successful have projected sales of 1-5 billion again which would generate royalty payments to Regen. I leave you to contemplate just how high the share price would be if this were the case but suffice to say it will be many many times what it is now.

Acquisition (Oct 2004) of Guildford Clinical Pharmacology unit demonstrates not only that they are progressive and expanding but also thinking strategically for GCPUL being a research based company no doubt Regen can now keep such costs within the group whereas before testing had to be paid for elsewhere. This acquisition also means that they have revenue and are therefore no longer a "virtual" company.

A share issue in July 2007 means that they should now have funds in hand to take them through to cash generation. Hopefully this means we have seen the last of the issues excepting any used by way of acquiring profitable companies.

The North America link is an interesting one as perhaps in readiness for the launch of Colostrinin out there Regen set up an ADR programme which became effective in March 2005. ADR's ( American Depositary Receipts) are a way for US investors to buy shares in UK companies. In Regen's case one ADR is equivalent to 200 Regen UK shares so when an ADR is purhased the Bank of New York will buy the proportionate number of UK shares and convert them into ADR's for the investor. At present this is not a factor however with the launch of Colostrinin out there if successful it may mean that US investors will want to be involved in the company and that will have a direct positive impact on our share price. In the US Colostrum (from which Colostrinin is produced )is already a recognised and popular health product and so demand should be good.

So all in all exciting times ahead. There can be few shares around that offer the potential of this one although as always DYOR and good luck with your investments whatever you decide here.

Response to press comment

RNS Number:6210F
ReGen Therapeutics PLC
04 July 2006

For immediate release

ReGen Therapeutics Plc

4 July 2006

Statement in response to press comment

ReGen Therapeutics Plc ("ReGen") announces that in the light of recent press
comment it is in discussions regarding a licensing agreement for the commercialization of ColostrininTM in North America. These discussions have been
in progress for some time.

A further announcement will be made when appropriate.

Another "buy on rumour, sell on fact" rise.

Possibly Keaydian, but I think that the sp is more likely to hold should the license agreement prove positive, also they have a very good chance of making the big time in a spectacular fashion if the zolpidem drug is marketed as one that can reverse severe brain damage. The results from studies so far are incredible.
kim

Hi guys. Thanks for posting the info Dinky1. I do not visit here as often as I ought, considering I started the thread but I tend to get caught up across the way so by all means post any news as it's good to see contribution and general activity here.

Anyway nice to see our patience being rewarded and Regen finally starting to be recognised.

Other news is that a Regen interview will apparently appear on ABC's Good Morning America tomorrow between 7 - 9am focussing on Zolpidem. It will be interesting to see how the US reacts. The markets have been closed there today. Tomorrow they'll hear about what the UK press described a s a "miracle" drug just a couple of weeks ago. Then on investigation they'll find that Regen are rumoured to be doing a deal on another product with a large company in their own country and then they'll see a share price that appears to be lifting off. If Pali Capital can get their act together and start shifting those ADRs (which equate to 200 UK shares) then US buyng could have a significant effect on our market.

Hopefully this is just the beginning. News of a deal should move us up further and then with Zolpidem and CLN pharma following behind the sky's the limit.

Good luck all

Welcome back Gantenbrink. With Discovery now in orbit and ReGen rocketing, it may be time for celebration?!
kim

Interesting times indeed chaps. Onwards and upwards!

This share is so frustrating! Down again and for no reason!!!

i take it everything we read on ADVFN is to be taken with a pinch of salt?? from being hugely bullish they have IMO turned somewhat bearish. I am not selling this till at least 5p where i will re assess the situation.

License agreement announced today with US neutraceutical developer, Metagenics, to commercialise Colostrinin.

good time to top up. low spread, good news, multibagger very soon .

More good news. CLN has Anti cancer and anti ageing properties. Should be a whole host of news to come with start of Zolpidem phase 2 trials, results of tox and GMP whilst all the time we draw closer to actual nutra sales via Metagenics. Need to see any overhang cleared from the issues and then we can see the positive effect of this news as it comes. Have a good long weekend everyone.

up again this morning

Still chugging along then!

ReGen Therapeutics says first-half sales figures are 55,000, reflecting what the company called 'the start of a healthy upturn in business.'

Turnover for the first two months of the second half of the year was 159,000, and the directors said that the current external pipeline looking forward is around 750,000.

The company said it now has over 1.2m of cash in the bank, taking into account its placing in July, which raised 1.1m gross.

Hi all

Just got back from the EGM. Great shame there were such a few shareholders there as we got the chance to ask questions for around an hour. I think there were only about 5 or 6 holders and as far as Im aware only myself and Asmodeus from the boards. Peter Garrod wasnt there nor was Tim Shilton. Tim is doing the rounds of Sterling, Metagenics etc. Most other Directors were there and also Malcolm Beveridge who some may recall resigned as a Director a while back for personal reasons but it seems is still holding his shares which I found encouraging

So I will attempt to address things in turn.

Firstly there was great disappointment that I had not logged onto the Regen website this morning for after all my moaning at them they have now updated it. I cant see any other reference here to the new look so it seems no one else has noticed but it is much more informative on the home page now which will be a great help to new investors doing their research so well done to Martin Small.

Nutra.

The good news is that it is still on target for sales in the US in H1 2007. The other good news is that it would seem that the reason we have not seen financial details and will not see them is because Metagenics are a private company and the intimation was that the deal is a good one so would not be in Metagenics interest to publicise it. When talking to the room about Zolpidem, PL was giving an example of figures and saying that even if the Regen percentage were as low as say 5% etc etc and then went on to say that the nutra deal was significantly higher so it would seem that the Finn indication of 10%+ is probably correct. I also clarified the fact that the manufacturing cut would be payable at the start, basically cash on delivery. Royalties I assume would however result from actual sales.

After much badgering it became apparent that tox tests & GMP only actually started about a month ago. Regen had apparently submitted all they needed but the hold up was in the US so there has not been a hiccup with the tests just that they started later than envisaged but this will not hold anything up. They still envisage no problems in this area.

Questioning about the Express article the other day PL said that they were in talks with a number of possible European partners, most of which were talking in terms of food supplements. It gave the impression that we could see different types of deal, one in this food additive respect and one more in the tablet form like Metagenics. He pointed out that it can take a while from a contract being on the table to it actually being signed as was the case with Metagenics. It would not surprise me if they were around the sort of table stage with at least one possible partner based on his use of this analogy.

Zolpidem

Trials will start in November. They have now got a contract for a documentary with a TV company and this will start filming in November and will be shown on Discovery Channel next year. This PL feels will be great timing as it is envisaged that results from the trials will be out in Q1 next year as well. They are confident that the trials will be successful as they are to be on known Zolpidem responders. The key aspect of the trials are whether they can reduce the sedation effect.

They have various agreements in place in terms of the delivery system (spray) etc and the market estimate is based on $1 a day for treatment. They fully expect to be able to license this out to a larger company at an early stage and seem happy enough about the patent situation.

CLN Pharma.

I get the impression we are barking up the wrong tree thinking about imminent deals here. They are indeed progressing with work on the petides and one has been successful in respect of Parkinsons but the indication was that we would not hear more in this area until next year as they push on to identify others.

Money

It was again reiterated that they do not intend to do an issue at the present time. When reading out the resolutions PL seemed to hesitate after saying pursuant to any fundraising just before saying and/ or business acquisitions. It has to be said that I was perhaps listening attentively at this point so perhaps his hesitation was more apparent to me.

I did take the opportunity to seek clarification as to why we were sitting at an EGM granting authority to possibly issue shares if they were not looking to raise funds and whether this meant that they were currently looking at acquisition/s. With verbal dexterity I did not get a clear answer. Bearing in mind the statement this morning which said no shares were to be issued for the time being to raise funds I then asked whether it would be possible for them to acquire a company in a paper transaction and if so would this technically not be issuing shares to raise funds? I very much gained the impression that this could be the case but there was no clear answer which didnt really surprise me if they had something in their sights. The easiest answer would have been no if there was no possible acquisition but there was no negative indication.

An interesting thing was that there were 2 people there who were working on raising awareness of the company, one in the US and one in Europe. I spoke to the Europe chap and gather that he has the task of getting institutional buyers. He said the main problem at the moment is that they want to see actual revenue so as the nutra money starts to come in this will be much easier. He also said that most of these companies are looking to invest a minimum of say 500,000 which is virtually impossible with a market cap of 7 million so again as the share price goes up and the Market cap grows this will be easier. There was talk about a possible institutional buyer (could have been Swiss) although I didnt quite catch whether they had bought yet or were going to perhaps Asmodeus got the info.

ADRs

This was raised in the meeting. The facility was set up by the Bank of New York and the impression gained was that it was perhaps set up by Regen more as a possible vehicle for acquisition of US companies than for trading. I pointed out that it didnt seem possible to trade them anyway and PL said he couldnt discuss it there but we would hear something soon in this respect.

Pet nutra

Sorry forgot all about this one but the impression I have gained before is that whilst this is on the to do list it is not a great revenue generator so they have more important areas on which to focus funds at present.

Final Thoughts

The overwhelming indication was that the company are very disappointed by the share price but very excited by future prospects and a number of times it was commented that they would expect to be self sustaining by 2008 possibly before depending on a Zolpidem licensing deal.

As I say there were handful of holders there and between us we asked numerous questions, sought clarification, moaned etc. Asmodeus had quite a lot of notes so will be able to fill in any gaps.

We did have a good moan about PR. I cited HML as an example of how to orchestrate PR leading up to a deal with numerous announcements of were getting closer and closer and yet closer and even now they have not yet actually said theyve signed a deal and yet their share price has gone up about 500% during this process. Regen who actually have sigend a deal seemed to throw out an RNS on a Thursday which was not particularly inspiring followed by a rushed GCPL one and our price then went down. They did seem to accept our comments although did point out that Zolpidem newspaper coverage had been good.

Another holder who was with Asmodeus had lots of great question and really gave the Directors a grilling over why they did not seem to show much faith in terms of their personal investment in the company. PL tried to defend this by saying that they dont get paid that much and they also have their employment based on the success of the company. This holder took no prisoners and said this wasnt much of a defence and he would like to see them having a bit more of a financial stake if they really are as confident as they make out. It was a point well made and would be great if we did see it acted upon as Im sure if we saw a couple of announcements about Director buying outside of share placements it would be positively received by the market.

There you have it. The market obviously hasnt made much of the interims but we have GCPL income increasing, news to come of the start of Zolpidem trials in November and perhaps about the documentary, the launch of the nutra getting nearer, people actively working on increasing awareness in Europe and the US, hopefully the sorting of the ADR facility, possible other deals to come in Europe on the nutra and longer term news on the CLN peptides. Furthermore we wait to see what why this authority was needed today when they are not looking to raise funds at this time. So theres a lot more to come.

As always, posted in good faith and as accurately as memory allows!

Gantenbrink - fantastic post. Many thanks for your time and effort. Sounds pretty good on the whole to me. A waiting game but then all good things.....

anyone know whats happening?

Rumour Maxtor, just rumour, apparently the Express says this:-

"Regen therapeutics was steady at 1.02p yesterday amid ongoing chatter that a European licensing deal was due in the next six weeks. There is also thought to be takeover interest from overseas pharma companies, and talk of a tie-up with Eirx Therapeutics, unchanged at .29p"

Not saying that it is unfounded but, at present it is just another rumour.
kim

cheers kim.

Smoke, fire? I'd be happier if the report had been in the FT rather than the Express though.....

Lots of media coverage about Zolpidem today after a UK judge refused a family's request in a right to die case where a lady is in PVS until such time as she has tried Zolpidem. Percy Lomax was on radio 4 this morning and Radio Five Live this afternoon.

There was press coverage in the Guardian and Mail as well as on the BBC website.

All in all good news for Regen if they are able to capitalise on this coverage by ensuring that Zolpidem is continually linked to Regen as a number of articles have appeared without mention of Regen. This will come down to Regens PR which to date hasn't been great but hopefully this is an area which they are improving.

I understand that the phase 2 trials are about to start in S. Africa so if they can get that announcement out now whilst there is the media interest that would be great timing and should attract some new investment as so far there is nothing in the current SP to reflect the potential of this drug.