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.

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!!

;-))

Going well early doors.

Nice start to the week. Hope today is a good day all round....D

Morning D.

Abit early yet Dave/Dstorey but I like you hope for a blue day today...

Big Al,
just because you've escaped from Norway is no reason to post all over the place. PS They managed okay without you, just about to stick some big pipes into the ground

hushpuppy - aha! You still holding this?

I see most of those 71.x trades are buys

Slowly, slowly

Big Al
Ha Ha, bought some more at 68p. Methinks I might trade these though

hushpuppy - be very careful. ;-))

Oh well still going to have to wait, the judge did not make a decision he will write to both SEO and BPRG when he has made up his mind.

Been quite regarding BPRG... only 5200 posts this week over the road as well!!! Very quiet!
Stanelco says court reserves judgement on appeal in Bioprogress case
AFX


LONDON (AFX) - Stanelco PLC said the court has reserved its judgement after Stanelco RF Technologies Ltd yesterday went back to court to argue that evidence which had come to light within the last few weeks in the continuing dispute with BioProgress Technology Ltd meant that the court should reverse its finding of breach of confidence by Stanelco.

Stanelco's case was that the documents which had been found showed that the information which BioProgress had argued at trial was confidential had actually been in the public domain for over 40 years.

After a full day's hearing, the court reserved its judgement due to the complexity of the issues which needed to be considered.

After the hearing, Stanelco chief executive Ian Balchin said: 'We regard the fact that the court has needed to reserve its decision as an indication of the seriousness of the point we've raised and its implications for both parties. We look forward to receiving the court's decision.'

If Stanelco's application is successful, Balchin said the company will not be liable to BioProgress at all in respect of its claim for breach of confidence. 'If we don't succeed then, leaving aside any costs issues, we'll be in just the same position as we are now.'

d2k - the eventual outcome is not as clear, methinks, but still a bit smoke and mirrors.

Lets hope the judge awards damages in favour of BPRG in direct proportion to SEO's delaying tactics!

Is this part of BPRG problems. (Cut and pasted from Shares Magazine)

For Wealth
Tax status confusion over BioProgress could force sale
Shareholders who purchased BioProgress
(BPRG:AIM) as part of an Individual Savings
Account (ISA) could be forced to sell the
stock at more than 40% below the price they
bought it.
BioProgess shares may now not qualify for
the tax-saving schemes as it is AIM-listed,
contrary to promises made by the company.
Bioprogress listed its American depository
receipts (ADRs) on US index NASDAQ in
October and believed that made it eligible for
ISA investment. If the shares are discovered
to be ineligible, investors might be forced by
the Inland Revenue to sell up within days.
Since the NASDAQ listing on 21 October
shares in Bioprogress, which makes gelatinfree
capsules, have dropped 43% from 125.5p
to 71.5p. Reyker Securities director Andrew
Watson says: You could be forced to sell. The
share price has gone right down and while
you could buy the shares back assuming
you have sufficient funds to do that that
would obviously involve trading costs.
Investors are able to hold up to 7,000 in an
ISA. PEP & ISA Managers Association (PIMA)
spokesman Simon Barrass says: From our
experience of the Inland Revenue it would
expect an ineligible stock to be removed as
soon as possible which I would suggest
would be a matter of days.
As recently as 19 November BioProgresss
website was telling investors: We have now
received confirmation from the Inland
Revenue that shares held in BioProgress by
individuals are now eligible to be held within a
PEP or an ISA, following the dual listing on
NASDAQ. Bosses have since pulled the
guidance and the website now says the firm is
seeking further clarification from the Inland
Revenue whether its shares are in fact eligible.
A PR spokesman for BioProgress says:
BioProgress did say it was its opinion the
shares were eligible and that everyone should
always consult their own adviser. The
company was told by the Inland Revenue its
shares could be used as part of an ISA or PEP
it has it in writing. The Inland Revenue
declined to comment.

Thanx for posting, interesting read...