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.

Big Dil
Nearly there - cars go on ramps don't they ;)

MST will make BPRG look like a snail trade (typed in the style of posters on the other side who are trying to get people to go as crazy about their own pet stock as they are on BPRG)............

Hilary seems to do it much better than me - must check out her style !!

I'll give it a go for you, mg..

How did I do? :)

Not bad - but we need to make the other, other side, aware of the massive potential of this glorious cash shell. I'm banned on there - it must have been something I said - or perhaps the company I keep ;(

You mean you don't even lurk over there?

Turning your caps lock on often helps mg :-)

Thank you, oh master ;)

ttt

Where is everyone? This is a future FT100 company you know.

I would think there are many in the sweat room. Give it 4 weeks and there will be a more than a decent rebound. The techology is good and profitable. The market for this company's products are massive. The court cases are peanuts in comparison. I have a nice little holding and expect it to see its previous highs once again.

The bulls and the bears are still in deadlock...

Nervous bulls are fearfull of pulling their weight cos they think the bears are stronger!
But the bears think that this is the bottom and due for a bounce cos this is support the last time around and news is better this time... court case won an' all that!

Who is going to win? Dunno! But seems the bears haven't got it all their own way now at this price

Fred you are wrong.

The patents look good on paper but the road to profitability has many pitfalls.

Good luck.

Be interesting to hear what the good judge has to say next week. He should be in a good mood given Mr Brown has given judges exemption from the new pensions tax!

Janus, next week?
Where did you get that info? And have you got a day?

Nice piece in yesterdays' Independent about hedge funds targeting heavily shorted stocks.

Nice if they looked at BPRG :)

well I did hear a rumour..................














but it's only a rumour ;-)

Let's wait 'til it's going up shall we?

;-))

bprg



JONNO1 - 28 Nov'04 - 11:24 - 18390 of 18404


Buy this UK world beater at a knockdown price for a prospective 47% gain by May 2005



Bioprogress, 71.25p
Market Capitalisation: 83m
Prospective PE: NA
Prospective Yield: NA
Sector: AIM
Symbol: BPRG
Sharecall: 0906 812 1210 (2412)
Website: www.bioprogress.com

Occasionally companies attempt to conquer markets via the introduction of groundbreaking technologies that, if adopted ,will cause seismic changes to the existing order.

Well, medical equipment supplier, Bioprogress is one such company. It is attempting to fundamentally alter the packaging of ALL oral tablet medicines. This blockbusting technology is the XGel Film system, which replaces gelatin as a means of encapsulating drugs. The XGel technology brings significant new benefits, not least enhanced drug delivery and the ability for different drug dosages to be contained on the same tablet.

Any technology that singlehandedly aims to address the vast global market in oral drugs has to convince the pharmaceutical R&D departments, executives and regulators of its utility. Then it has to be able to deliver.

Bioprogress is delivering - customers are converting to its technology

This is not like building a business around an established product range or service. It's about creating a new market, then dominating it. A parallel can be drawn with the Dolby Noise Reduction technology. Once manufacturers accepted its usefulness it was universally adopted. If only you could have invested in that growth story! Well, with Bioprogress you are in right on the ground floor.

Bioprogress expects that once XGel has gained sufficient acceptance, its main job will be to supply film for wrapping tablets. By that time the pharmaceutical companies would have already altered their production capabilities to accommodate the new technology.

Bioprogress has made some stunning progress in gaining acceptance of its range. In June, its machines were installed at Wyeth (formerly American Home Products) and completed extensive due diligence.

This involved convincing Wyeth and other potential licensees that Bioprogress has the film-manufacturing capabilities to supply sufficient quantities of film once production starts. Now negotiations have started on technology licensing and further product development. These should conclude successfully - after all, back in July Bioprogress acquired the plant and assets of film manufacturer Aquafilm to increase its film-production capabilities.

Key to the business model is securing licensing agreements with major pharmaceutical and healthcare companies. Licensees will incorporate Bioprogress technologies into their manufacturing facilities, which will secure income from upfront signings, royalties on sales and orders for film.

The other technologies are exciting too...

Tablet wrapping is not the only potential blockbuster. Also in the bag is Soluleaves, a biodegradable wrapping product that dissolves in the mouth. Colgate-Palmolive has announced it will use Soluleaves for its new launch of Max Fresh - a whitening toothpaste with mini-breath strips.

This will contribute to revenues going forward - CEO Graham Hind expects US$50m in revenues between 2004 and 2006 from the Colgate deal and other possible deals in Europe involving Soluleaves. The acceptance by Colgate marked the end of two years, product development and research and is a resounding testament to the technology's application to consumer products.

A further deal with AXM Pharma to introduce Soluleaves into children's vitamin products in the China/Taiwan market was signed at the end October and should be worth US$2m to 2006.

Also in the biodegradable area is the flushable colostomy pouch. This has been licensed to Bristol Myers Convatec, the largest healthcare operator for this type of product. This fully patented pouch addresses an annual market worth US$1bn and offers significant benefits over existing products. Revenues are expected in 2005 from the Bristol Myers deal. The positive point for shareholders is there will be no costs attributable to Bioprogress, as the license is structured to deliver royalties only, with Bristol Myers responsible for manufacturing and sales.

Recent nervousness in Bioprogress shares is attributable to a variety of factors. The group recently listed on NASDAQ and trades in ADR form; this has brought on US investors who are, by in, large looking for very quick commercialisation of its intellectual property. Their time horizon is shorter than the City. Furthermore, Bioprogress recently issued a convertible bond with a 4% coupon and 152p conversion price, suggesting the board saw this share price level as very full. Bioprogress, with its frequent newsflow, is a bulletin board favourite that attracts the day-trader fraternity.

But weakness in the last fortnight was due to rumours of weak trading and culminated in a statement on 18th November. The board commented that Bioprogress expected 7m of losses for 2004 due to high legal costs associated with a successful intellectual property battle with rival firm, Stanelco, and higher losses than originally anticipated at its Biotec Films (Aquafilm) subsidiary due to a loss of third-party business and tobacco-industry work.

Cash in the bank and the world at its feet... and a bargain share price

However, Bioprogress is well placed following recent fundraisings. It has 15m in net cash - the equivalent of 3 years worth of cash burn. The chief executive reaffirmed his commitment to taking Bioprogress forward via the long-term licensing deal model and the protection of core technologies.

The endorsement by major US companies, who normally have lengthy decision-making/trial periods, is ample evidence the very strong encapsulation technologies will appeal to Big Pharma globally. The shares at 130p got a little carried away at a market capitalisation of 151m.

At the current share price of 71.25p, the enterprise value of 68m seems a fairly good entry point to what remains a very exciting bag of technologies that is gaining traction fast. We would caution though that the shares will remain volatile, often moving 5% to 10% in a day, so you should be prepared to give the company at least six months to reach our 105p target price. BUY





Sunday 28 November 2004 10:51AM


Fleet Street Letter Issue # 2211, Nov 26, 2004

Fred1new- I agree ;-)

FSL quick on the draw as usual - NOT!!

;-))