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.

Press Release 4 March 2005

BioProgress plc

2004 Preliminary Results - Monday 21 March 2005


BioProgress plc, a provider of innovative delivery mechanisms for the
pharmaceutical oral dosage markets, will be announcing its Preliminary Results
for the year ended 31 December 2004 on Monday 21 March 2005.

Keeping tabs on tablet market March 2005

Graham Hind, ceo of Bioprogress, discusses the growing tablet and capsule
market and gives an insight into Bioprogress' business plan for these
markets


European consumption of gelatin is around 250,000 tons per annum (1), while
annual consumption for pharmaceutical uses in Europe is around 20,000 tons
(1). The global figure for pharmaceutical use is around 49,000 tons (11).

Gelatin is used in most of the main pharmaceutical oral dosage forms, such
as liquid containing capsules and two-piece coloured powder containing
capsules. In the USA, the McNeil division of Johnson and Johnson (Tylenol)
and Bristol Myers Squibb (Excedrin) pioneered the use of gelatin to coat
tablets, producing glossy two-colour caplets that are easier to swallow. Due
to patents filed by Banner Pharmacaps and Johnson & Johnson relating to
gelatin coating and gelatin dipping of tablets, there are no other companies
outside of the USA offering gelatin tablet coating.
The widespread awareness of BSE and its human form CJD has prompted the
pharmaceutical industry to seek alternatives to animal derived materials
like gelatin. This has created an opportunity for BioProgress to develop a
range of new pharmaceutical dosage forms which use the BioProgress
proprietary cellulose based film materials, coupled to new manufacturing
processes, to replace the current traditional gelatin drug delivery forms.
In addition to being animal free, these new processes are faster, lower cost
and can also offer significant opportunities to improve drug delivery.

PHARMACEUTICAL ORAL DOSAGE FORM MARKET

Pharmaceuticals, vitamins, minerals and supplements are delivered into the
human body in a number of different oral dose forms. BioProgress has
developed oral dose delivery systems under the overall XGEL banner to
provide a gelatin-free alternative to each of the major gelatin based dosage
forms.

1. Spray coated and gelatin coated tablets (caplets)

Globally, the largest pharmaceutical and supplement dosage delivery forms by
volume are tablets which, according to industry sources (2), account for
around 75% of the total global oral dose market, with annual volumes of
around 900 billion tablets. All the major global pharmaceutical companies
produce their drugs in tablet form. The largest contract tablet manufacturer
is Perrigo, which produces more than thirty billion tablets per year.
BioProgress has developed TABWRAP, a new non-gelatin tablet coating
technology which competes in this sector.

2. Gelatin two-piece two-colour capsules

This is the second largest sector by volume and accounts for around 20% of
the total market, at 240 billion capsules per annum. The dominant companies
in this market are Capsugel, with nearly 50% market share (3), and Shionogi
Qualcaps from Japan. BioProgress has developed the gelatin-free NROBE
technology to compete in this market sector.

3. Liquid-filled gelatin soft capsules

This oral dose market sector has annual sales of around 100 billion capsules
(5), of which 60 billion are pharmaceutical products, particularly OTC
analgesics, while 40 billion are supplements like vitamin E and cod liver
oil. This market is dominated by a few large companies which contract
manufacture capsules.

The largest is Cardinal Health (R. P. Scherer) with around one third of the
global market, followed by Banner Pharmacaps, the largest in North
America(5), but around one fifth the size of Cardinal Health. BioProgress is
developing a non-gelatin liquid-fill technology called SWALLOW to compete in
this market sector.

4. In-the-mouth soluble film

A fourth new oral dose delivery form is beginning to develop, based around
small postage stamp sized pieces of soluble film which dissolve on the
tongue. This market was pioneered by the Warner Lambert division of Pfizer
through the introduction of Listerine breath freshening strips in the USA in
2001.

Vitamins and supplement products have already been introduced and
pharmaceutical products are likely to follow in this new delivery form.
BioProgress has developed and patented a technology called WAFERTABT which
can improve drug delivery in this dosage form.

In March 2004, BioProgress acquired a USA based company called Aquafilm LLC,
which has since been renamed BioTec Films. This company has considerable
expertise in the production of these new in-the-mouth dissolving films.
BioProgress has also, through this acquisition, been able to capture further
new IP in soluble film processing and production. Patents have now been
filed based on processing technology by BioProgress, particularly in the
area of dose loading and taste masking in the 'in- the- mouth' dissolving
film.


BIOPROGRESS BUSINESS MODEL

The BioProgress business model for its XGEL dosage forms is based upon the
Tetrapak packaging model - the supply of specialised production machines to
produce the dosage form and the supply of the proprietary films needed to
run the machines.

Applying this model to pharmaceutical products means that any new
pharmaceutical product or any existing product being transferred into the
BioProgress XGEL technology will require new data on stability or improved
product performance relating to the BioProgress films submitted to the
relevant regulatory authorities to amend a medicine's product license for
the product.

In this process, the BioProgress patented films become specified as part of
the new medicine's product license. This makes a competitive response more
difficult as any further new films offered by a competitor of BioProgress
films would require new data to be produced, at a significant cost, and it
is unlikely there would be enough of a price differential to make this
viable.

To successfully implement the business model, BioProgress had to be able to
show pharmaceutical customers that the XGEL machines would be built,
installed and serviced to the highest standards.

STRATEGIC ALLIANCE WITH HARRO HOEFLIGER

To provide this capability, BioProgress entered into a strategic alliance
with Harro Hoefliger, the German pharmaceutical machine manufacturer in
October 2003. A Harro Hoefliger supply nine out of ten of the world's
leading pharmaceutical companies and has a global sales and service support
network. Harro Hoefliger will assist with the design, build, installation
and commissioning of BioProgress pharmaceutical production machines and will
provide a global parts and service network. However, while Harro Hoefliger
will be the BioProgress preferred global supplier, there may be specific
circumstances where BioProgress allows machines to be built under license by
parties other than Harro Hoefliger.

The machines vary in cost according to their complexity, but are in line
with the costs of other modern sophisticated pharmaceutical packaging
systems. NROBE and TABWRAP machines cost in excess of 1 million,
depending on specification, while SWALLOW XGEL liquid fill capsule machines
are around 0.5 - 0.75 million depending on specification.

FILM MANUFACTURING TO PHARMACEUTICAL STANDARD (cGMP)

The ability to manufacture and supply BioProgress proprietary films to
pharmaceutical standards has been an issue that the company has needed to
address. There are third-party film suppliers in the USA and Japan which can
make and supply food grade films that would be adequate for dietary
supplements and non licensed medicines. However, licensed medicines require
films produced to pharmaceutical standard, and third-party suppliers have
been reluctant to make the investment necessary to upgrade their facilities.
The Aquafilm business is a good example of this. It had historically been a
supplier to BioProgress of food grade films but the owners chose to sell the
business to BioProgress rather than further invest themselves.

The principal difference between pharmaceutical cGMP and food cGMP standards
is the need to use purified water for pharmaceutical production, which
requires the installation of a specialised water purification plant. The
Aquafilm plant has current capacity to provide film for around 20 NROBE
machines or 10 TABWRAP machines on its existing single line. BioProgress is
planning a second line at this plant, including the installation of a water
purification system, with a total investment of around US$4 million. This
should be completed by the end of 2005

BioProgress still intends to establish a film production facility in the UK
to service the European markets for its technology and a number of options
are being evaluated.

One attractive option for BioProgress would be to install a film production
line within an existing UK pharmaceutical plant. The production line would
be owned by BioProgress and visited by BioProgress customers but would be
operated under contract by the pharmaceutical company. The Pharmaceutical
Company would have in place existing appropriately qualified personnel and
procedures to meet UK and US FDA pharmaceutical film production regulatory
requirements.

BioProgress would provide the technical know how to produce the film. This
partnering concept would be highly cost effective for BioProgress who would
not have to recruit, employ and train the production and quality control
personnel.

It is understood that BioProgress is in discussions with several companies.
It is expected that a facility will now come on line in 2005.

BIOPROGRESS TECHNOLOGY COMMERCIALISATION MODEL

It is a major challenge for a small company like BioProgress to develop a
range of new pharmaceutical dosage delivery systems and commercialise them
internationally in the $390 billion+ (4) global pharmaceutical market. The
company therefore has chosen a technology licensing business model to
commercialise each of its technologies.

Of its five new pharmaceutical dosage forms, BioProgress has licensing
agreements which have been agreed for three out of the five and active
discussions are in progress for the remaining two.

LICENSING OF BIOPROGRESS XGEL PHARMACEUTICAL ORAL DOSAGE FORMS.

BioProgress has so far licensed three of its five XGEL dosage form
technologies - SWALLOW liquid fill capsules, TABWRAP tablet coating
technology and NROBE powder fill technology. Negotiations are actively
underway relating to licensing the two other BioProgress dosage forms,
namely SEPTUM and WAFERTABT.

NROBE powder fill and light compaction technology

NROBE is an entirely new pharmaceutical dosage form. A number of pockets
are vacuum formed in the BioProgress proprietary glossy coloured cellulose
film. This can be visualised as bubble wrap packaging material pulled in
half. A powder mix containing the pharmaceutical drug is then deposited into
the preformed film pocket and lightly compacted to form a dome tablet shape.
A second film is then vacuum formed over the top of the powder dome,
completing the dosage form.

The NROBE technology has a number of advantages. It is a non-gelatin
alternative system to the two-piece gelatin hard capsule, the second largest
global pharmaceutical dosage form after tablets, of which some 250 billion
are sold annually (3).

The two-piece gelatin capsule is often the dosage form of choice for new
ethical pharmaceutical drugs. Powder form medicines are easier to formulate,
enabling a faster time-to-market and as long as possible a time period for
patent exploitation. Following successful introduction, the products are
then often re-formulated in tablet form to reduce costs.

NROBE has the potential to provide an effective non-gelatin alternative to
the two-piece gelatin capsule dosage form as an initial choice dosage form
for new medicines. As NROBE does not require the excipients and binders
needed for traditional tablet forming; it also holds the promise of a means
of reformulating drugs in tablet form approaching the end of their patent
life.

Over the next five years, more than fifteen blockbuster drugs will face
patent expiry, resulting in the potential loss of up to $50 billion in
revenues(6). Intelligent use of drug delivery technologies can help a
product maintain and extend its market share by providing drugs with
additional clinical benefits and extending the product life-span beyond the
patent expiry of the active substance.

NROBE technology may provide licensing revenue opportunities for specific
pharmaceutical molecules reaching the end of patent life. The NROBE
technology could be exclusively licensed, offering product enhancement which
would be unavailable to generic alternatives.

FMC Corporation - the BioProgress global Licensee for NROBE

FMC is a $2 billion annual turnover US Corporation with diverse interests
from agricultural chemicals and food ingredients to pharmaceutical products.
The FMC BioPolymer Division is the licensee for Bio Progress's NROBE
technology. It has a long established relationship with all the leading
global pharmaceutical companies and operates in all the major international
pharmaceutical markets. This makes FMC an ideal partner for BioProgress to
develop the NROBE technology.

TABWRAP tablet coating technology

TABWRAP is a new tablet coating technology which was specifically developed
as a non animal derived alternative to replace the two-colour gelatin
coating and caplet process used to coat brand-leading OTC products in the
USA, such as Tylenol and Excedrin.

A pocket is formed in the BioProgress proprietary film which is the size and
shape of the tablet. The tablet is placed in the film pocket and a second
film is wrapped onto to the other side of the tablet. A two-colour tablet
presentation is produced, which is indistinguishable from a gelatin coated
tablet presentation. Although gelatin coating is currently used in the US
and in most other parts of the world, tablets are coated by a cellulose
spray or sugar coating technique. This involves batch processing and only
one colour is achievable.

TABWRAP replaces slow spray coating batch production with a fast continuous
process, linking the tablet press with the tablet container or blister
packer. The BioProgress proprietary film can be formulated to dissolve much
more quickly than tablet coatings, releasing the drug into the body faster.

The TABWRAP technology competes with gelatin, cellulose spray coating and
sugar tablet coating technologies in the 900 billion per year solid tablet
global market (2

SWOLLOW liquid fill capsule technology

SWALLOW is a compact liquid filling capsule process where the machine takes
two rolls of BioProgress proprietary film - a half capsule is formed on each
roll and the two halves of the capsules are brought together to form a full
capsule. The films are made from BioProgress proprietary formulations of
cellulose (HPMC).

The SWALLOW technology has major advantages over gelatin liquid capsule
production or wet starch based capsule production.

- it uses dry preformed rolls of film, eliminating the wet mixing stage
required for gelatin or starch

- the capsules are dry and do not require the up-to-two-day final drying
stage required for gelatin or starch

- capsule production is much faster than gelatin or starch based processes,
which average hourly outputs of 60 to 80 thousand capsules per hour. The
SWALLOW technology has the potential of hourly capsule output speeds of
several hundred thousand capsules per hour.

The large multi million pound capital infrastructure required for the
current gelatin or starch based production of capsules has resulted in the
normal business model being one of contract manufacturing. A few large
companies, such as Cardinal Health, Banner Pharmacaps and Swisscaps make
liquid capsules for the pharmaceutical market, while capsules for the
dietary supplement market tend now to be made by low cost producers in the
third world, including India.

The BioProgress business model is to target the customers of the toll
manufacturers rather than the toll manufacturers themselves. In the same way
as the computer industry changed when the PC replaced the mainframe
computer, BioProgress customers can directly purchase the small compact
SWALLOW capsule machine and the films necessary to operate it. This gives
the flexibility of capsule production and, as there are no toll manufacturer
margins, particularly in the higher margin pharmaceutical sector, it is much
more cost effective for the customer to buy a BioProgress SWALLOW machine
and films and make their own capsules.

The soft capsule global market is estimated to be 100 billion capsules, with
around 600 soft gelatin capsule machines operating worldwide(5). The
BioProgress business model is to target the customers of the current
contract gelatin capsule producers rather than the producers themselves.
This business model changes the dynamics of the liquid capsule market in the
same way as the data processing market, which was dominated by a few large
companies with big expensive mainframe computers, was revolutionised by the
introduction of the Personal Computer.

Companies wishing to make liquid capsules will not need to go to the large
contact encapsulators; instead they can buy a BioProgress XGEL machine and
the films to make their own non-gelatin capsules. This means the potential
market for BioProgress machines is much larger than the current estimate of
600 installed gelatine machines worldwide.

The BioProgress business model also offers an interesting opportunity for
the growers of high value oil crops used in dietary supplements. These
producers currently have to send their extracted oils to be encapsulated in
gelatin by the large contract gelatin encapsulators. They could buy XGEL
SWALLOW machines and encapsulate their own oils, selling finished oil
capsules increasing their margins and moving their business up the value
chain.

"In the mouth" dissolving film technology

In 2001, Pfizer Warner Lambert Consumer Healthcare division launched
Listerine pocket-pack breath freshening strips in the US and achieved sales
of $200 million in its first year (9). Time Magazine in 2002 called the
Listerine product one of the best recent inventions, along with
breakthroughs like the birth control patch. Consumers liked the convenience
of placing a small postage stamp sized piece of fast dissolving film on the
tongue.

In 2002, Pfizer faced a number of competitors with the launch of breath
freshening strip products from Wrigley's and the Altoids mints division of
Craft Foods. Pfizer spent $52 million advertising Listerine pocket packs in
2002(10) while, in 2002, Wrigley's gave away about 40 million samples of
their breath freshening product via Delta and United Airlines (11).

BioProgress filed a patent early in 2004 on a film technology called
WAFERTABT. It is understood the patent relates to novel methods of adding
pharmaceutical actives to soluble film, to enable the delivery of medicines
via the fast dissolving 'in-the-mouth' films. In addition, supporting
know-how was also acquired with the purchase of the Aquafilm assets in
Tampa, and BioProgress have filed other patents relating to manufacturing
processes which enable the addition of high levels of vitamins and other
actives into the film strips.

The core BioProgress proposition is very exciting - no less than the
possibility of changing the way the world's pharmaceuticals and dietary
supplements are delivered. The background situation in relation to gelatin,
and the pharmaceutical industry's desire to move away from animal derived
materials, helps create the right climate for the BioProgress proposition.

To fulfil the promise BioProgress must deliver three things.

. Strong Intellectual property which protects licensees and customers

. The ability to design, build and deliver the XGEL machines

. The ability to manufacture and supply the XGEL films


Bioprogress Business

The company develops soluble film materials and designs engineering
processes to turn these films into commercial products. It currently has in
excess of eighty patents either granted or pending. The company is focusing
on high value applications for its technology such as pharmaceutical and
medical products.

Excellent,as ever.Thankyou Jumpin.
I would imagine that nothing much happens to the sp until results 21 March.Future prospects for this company look wonderful.Hope they can push forward with their plans.Obviously,no big orders till the production lines are ready.
Ethel

The basics are , the company is investing in production, plant etc
so the numbers will look bleak on the 21 March
that will upset some people

long term they will reap the rewards

ps
remember my CFN tip at 100p (Oct 04 ish) (mid 186.5 today)
I got in at 100p and then again at 130p

good luck all
aqafresh
7-Mar

aqafresh, Bleak?! I have a feeling you could be right on the button!

Now we seem to be pumping Wafertab, can't see it earning enough with that product to be honest.

It's about time they got XGel up and running and the promised deal with Wyeth. But as they have little hope of getting a machine on the market till at least 2006...I can't see the need for investors to rush in and buy?

Most ramped share on the BB's? Is it worth it?

raytac=miserable sod

All you've got to say renault19, just come out from the ant colony? What a shame. :)

Depends whether you want to buy in at a cheap price Rayrac or wait until these are North of 2 later on this year....

RobinReeve? Where did you think that one up? :)

So later this year then (I've heard that before). No rush then as I say above?

Markets price in many months or even years ahead.. how long depends on the individual share..
Some companies have traded at many multiples of present earnings because of future potential.

Yes, but XGel has been around at least since 1998! No one else seems to be in a rush to use XGel, so why on that basis, should anyone be in a rush to buy the shares?

I have a feeling the interims will be very interesting!

Is that Jumping Joe? :)

up almost 10%

Is there any truth in the rumour they are set to buy/receive (for damages) a substantial stake in SEO ?

i dont think seo woulg give a stake to bprg, they have already put away 1m for the settlement.

AXM Pharma receives $700k order for the first sunkist order which includes bprg dissolve-in-mouth products.

http://www.iccinfo.com/AXIM_Pages/index_News.html

http://www.iccinfo.com/AXIM_Pages/index_News.html

160m forecast from the FMC deal earlier, where has that gone? Should they have forecast that so early?


This from part of the Bioprogress report....

"It is therefore difficult to accurately forecast the Company's financial
performance during the early and pre commercialisation phase of its licensed
technologies. This is a challenge for the Company's management but is offset by
ensuring the company has a strong balance sheet with sufficient cash not only to
underpin the companies financial security while revenues are uncertain but also
to reassure its customers and licensees that it has the financial strength to
survive during the period it is readying its technologies for commercialisation.
This is an important issue for potential licensees as entering into a new
technology licensing agreements involves the commitment of substantial resources
by the licensee.

A strong cash position also enables the Company to delay licensing discussions
for newer technologies like WAFERTABTM until a much later stage in their
commercial development when they are demonstrable. This enables much higher
value to be secured for shareholders from customers or licensees than was
possible in the earlier stages of the Company's development when it had fewer
resources.

The Company will increasingly be able to control and forecast its revenue stream
more accurately, and its financial performance will also stabilise as the XGEL
(R) technologies become demonstrable and the Company can generate revenues by
the sale of machines and film in markets and product fields outside of those it
has already licensed and where licensees control the rate of revenue stream.

The revenue and profit contribution of BioTec Films has been lower than
anticipated in 2004 and this will continue in 2005 as the market for simple
relatively unsophisticated dissolve-in-the-mouth products has matured and become
generic. There is more competition as these products do not require
pharmaceutical standard manufacturing facilities and margins in this sector have
been eroded.


And this from the High Court judgement twix Stanelco and Bioprogress...

"21 March 2005

Stanelco plc ('Stanelco')
Stanelco wins leave to appeal

Stanelco RF Technologies Limited, a subsidiary of Stanelco, the RF (radio
frequency) applications group has been granted leave to appeal over the findings
made against it in its long running dispute with BioProgress Technology Limited.

In the hearing at the High Court on Friday 18th March the Court also stayed all
further proceedings relating to the dispute, including BioProgress' claim for
damages and the process directed at implementing the judge's initial finding
until after the appeal is heard. BioProgress were also ordered to pay 9,750
towards Stanelco's costs for this hearing and an earlier application by
Stanelco. BioProgress were also given leave to appeal the court's trial
judgement.

Ian Balchin, Chief Executive of Stanelco commented:

'This is a very significant result for Stanelco and leaves the way open for us
to appeal the decision of the Patents Court, which we now intend to do. We are
committed to protecting our technology and remain confident in our litigation
against BioProgress that Stanelco will retain access to the technology which we
developed.'"

Doesn't look very good for one of the company's involved?

the short sellers are back in bprg

Yep thats it , blame the shorters !

Maybe its holders waking up and smelling the coffee and the fact that small caps are getting battered across the board regardless of fundamentals.

It seems to me that a supposed sell note was issued by Numis that caused the drop, but I would like to clarify the reliability of Numis and their forecasting!

29 Aug 03
Numis buy rating for Wellinton underwriting price target 110p
share price 29 Aug 03 94.3p
Share price never went above 96 after that and fell to 74.4p

16 Aug 02 Buy Luminar 16 Aug 02 price 679p
Price went up briefly and then went into freefall to 261p on 30/1/03

I can get many more examples.

Brokers note are at best 50/50! Toss a coin...
...............................................




And here is a classic!
Numis...


MARKET COMMENT for WEDNESDAY 23rd FEBRUARY 2005
Numis says add Topps Tiles (TPT.L) (raising the target to 280 pence from 250p)

Oops, what price did it close on 23rd March 05.. oh dear... 189p
one month later!
................................

15:08 Wed 28 April 2004
Numis has a and a buy rating for Amvescap, while cutting its target price to 475p from 530p. Amvescap price that day 384p .. never recovered, fell to 260 and only now is price at 333p

sell rating and 120p price target for Aggreko
Aggreko price that day 156, went to around 140 at then bounced to price now around 170

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Do the opposite... more profitable as I have found out on Num(er)is occasions