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.

There is current legal action regarding patents between them.

Yes I understand that - what I dont understand is how a poorley worded RNS for SEO is good news for BPRG - btw - I own shares in both - and so far SEO is more in profit than BPRG which I have held since they were 29p

History repeats its-self, anyhow we are on the move now, SP now up 5%

MM's after our stock, cos the spread has norrowed, keep the faith

Once CC is concluded then we can distance ourselves from SEO, period.

Moving on upwards today, news release can't be far away now.

RNS out today, great news

BioProgress plc

BioProgress plc ('BioProgress', the 'Company' or 'Group') announces
Acquisition, Joint Venture, Fundraising and Trading Update

March, Cambridgeshire, 21 December 2005: The Board of BioProgress plc (AIM:
BPRG; NASDAQ: BPRG), the provider of innovative delivery mechanisms for the
pharmaceutical and medical device markets, is pleased to announce that it has
entered into an agreement to acquire the whole issued share capital of Dexo
S.A. ('Dexo'), a French speciality pharmaceutical company. This acquisition,
through a newly formed vehicle Dexo BioPharm Ltd ('Dexo BioPharm'), signals a
significant change from a drug delivery and material sciences company into an
integrated speciality pharmaceutical and healthcare business, which can develop
and market its core technologies in combination with other innovative products.

The consideration for the acquisition of Dexo is 12.5m, 8m of which will be
paid in cash and 4.5m in sterling denominated ordinary shares, representing
5,866,791 new ordinary shares (the 'Consideration Shares'), to be issued at the
time of completion. 2,607,463 Consideration Shares will be held in escrow as
security for the warranties given pursuant to the agreement. The holders of the
Consideration Shares will undertake on completion of the acquisition that they
will not transfer or dispose of any Consideration Shares until the date falling
1 month from the date of completion of the agreement; that they will not
transfer or dispose more than 1,303,731 Consideration Shares prior to the date
falling 12 months from the date of completion of the agreement; and that they
will not transfer or dispose more than an additional 1,303,731 Consideration
Shares prior to the date falling 36 months from the date of completion of the
agreement. The Consideration Shares will also be subject to an orderly market
agreement. It is expected that the completion of the acquisition will take
place on 5 January 2006.

The Consideration Shares represent approximately 4.77 per cent. of the issued
share capital of the Company and will rank pari passu in all respects with the
existing ordinary shares of the Group.

Dexo is a long standing profitable private company with specific expertise in
registering and marketing innovative branded products into the French
healthcare system. It operates in the area of registered pharmaceuticals, and
specialises in medicines to treat gastrointestinal illness, and products for
ear, nose and throat ailments, along with a treatment for Wilson's Disease (a
fatal disorder caused by excessive copper accumulation in the liver and brain,
affecting one in 30,000 people world wide). Dexo is currently run by Mr
Jean-Francois Sfarti, the former CEO of Sanofi Pharma France who will remain as
president of Dexo, along with the current team, running the operations in
France. To assist the current Dexo team and to coordinate the Group's
reorganisation and expansion into new markets, BioProgress has recruited
additional management experienced in the pharmaceutical field, including a
practising pharmacist to act as the Company's responsible pharmacist, and a
medical consultant.

For the year ended 31 December 2005, Dexo is expected to generate turnover of
approximately 6.5 million (2004: 6.2 million) with normalised net margins
above 30 per cent. Net assets of Dexo at completion are expected to be around
3.0 million.

Through the creation of the new pharmaceutical division BioProgress will be
able to apply its technologies to Dexo's products, develop new products and
market the enhanced products directly. This capability is expected to
demonstrate to consumers and partners the benefits of its technologies such as
XGEL. The new Dexo BioPharm division will be immediately accretive in cash
terms and creates the potential for near-term Group profitability.

Richard Trevillion, CEO of BioProgress, said: 'I am delighted to welcome the
management and staff of Dexo into the BioProgress group. Our technology lends
itself to rapid brand differentiation and improvement, particularly in areas of
patient compliance and product life cycle extension. With France's well known
history of accepting innovative pharmaceutical formulations, we see this as a
significant springboard to see maximum value for our company's technologies.'

Jean-Francois Sfarti said: 'Dexo is very pleased to be joining BioProgress.
BioProgress' platform technologies will allow us to add significant value to
our existing range of products and will enable us to access new product areas
with significantly improved product profiles and differentiation.'

The Group also today announces a new joint venture, fundraising and trading
update:

Joint Venture with Crescent Pharma

In parallel with the above acquisition, BioProgress has, through its
newly-formed pharmaceutical division Dexo BioPharm, entered into a joint
venture (JV) named Dexo BioGenerics Limited which is 75.1% owned by the Group.
The JV partner is a private generics supplier, Crescent Pharma Limited, part of
the General Mediterranean Group based in Basingstoke, which supplies a wide
range of generic and OTC medicines in the UK. This JV brings significant new
skill sets to the Group including manufacturing and regulatory know-how and a
wide range of product licences for generic medicines including NSAIDs,
simvastatin and diazepam. These will be combined with the Group's core oral
delivery technologies for rapid commercialisation.

There is no consideration payable on the formation of the JV. The development
and marketing of enhanced generics will be funded by Dexo BioPharma and the JV.
Marketing and administrative resources will be provided to the JV by Crescent
and the BioProgress Group.

Richard Trevillion, CEO of BioProgress, said: 'The combination of the JV with
the acquisition of Dexo S.A. brings to the Group instant cross border business
reach in two distinct markets, those of branded medicines and generic products.
The acquisition and JV are significant steps for the Company, changing its
overall structure into a focused integrated speciality healthcare business with
multiple revenue streams and solid partnerships.'

Mr Mohammed Al-Doori, Chief Executive of Crescent Pharma Limited, said: 'Dexo
BioGenerics, a joint venture between Dexo Biopharm and Crescent, will offer
patients an exciting new range of medicines by combining Crescent's range of
well established generic drugs with BioProgress' cutting edge delivery
technology. Crescent's market experience will assist in ensuring the commercial
success of the new product range.'

Fundraising

The Company also announces today the placing of 12,285,328 new ordinary shares
of 1p each with institutional and other investors (the 'New Ordinary Shares'),
representing approximately 9.99% of the current issued share capital of the
Company, at 47p per New Ordinary Share (representing a 12% discount to the
volume-weighted average share price as on 19 December 2005), under the
provisions of s.95 of the Company's Act 1985 as amended.

It is intended that the proceeds from the fundraising will be used to refinance
the cash consideration for the acquisition of Dexo and to provide additional
working capital for the Company, although the acquisition of Dexo by the
Company is not conditional on the fundraising.

The New Ordinary Shares will rank pari passu in all respects with the existing
ordinary shares of the Group. It is expected that admission to trading and
dealings in the New Ordinary Shares will commence on 3 January 2006.

Trading Update

Finally, the Board is also pleased to announce a positive organic trading and
development outlook and an expectation of near term growth. Due to the rapid
restructuring initiatives undertaken since the appointment of the new
management team in May of this year, the Group is in an improved financial
position with cash burn reduced by over 75% on an operational basis in line
with the comments made in the interim statement.

All key partnerships have also either been renegotiated or are being
renegotiated and the Company is in late stage discussions with a number of top
10 pharmaceutical companies for new commercialisation initiatives across its
range of technologies. Feasibility programmes are taking place across the
ingestible and non-ingestible product range with new partners, emphasising
BioProgress' rapid commercialisation solutions. In addition, the Company has
entered into evaluation contracts with a number of large pharmaceutical
companies.

As a consequence of restructuring and refocusing at BioProgress, the Group's
film production division BioTec Films is now producing a monthly net profit,
and the division's client list has been expanded. Measured investment is now
being undertaken to add to BioTec Films' offering and to link in and support
other new initiatives across the Group.

As part of the cost reduction initiatives and to reflect the changes to the
Group's structure, the Company will also be moving its premises from March to
the Cambridge Science Park during the first quarter. The move will decrease
rental lease costs by over 70% and locate the Group in an area renowned for
innovation in related industries. The Company has also established a London
presence to provide greater access to potential and existing partners and
advisors in addition to housing its new Dexo BioPharm division.

The Company also announces that it has settled legal proceedings brought
against it and some of its subsidiaries by a former employee of one of its US
subsidiaries. These proceedings were mentioned in the company's United States
20-F filing on page 43. The terms of the settlement are confidential.

Now thats what I call an RNS - seo could learn from this

On the move now up 12% how far will this go?

Hi N,
I just sold at 58,think it may go down to 52/54 and hope to buy back in

Good luck,
Great news

What is the saying... let your profits run?

Jumpin,
Only sold on a gut feeling,
Win some loose some,
Happy with my profit,but will be very happy to buy back in if it falls to around 52

If it falls back to that I will be surprised.
I have no intention of selling mine at this level

Great, another 50% rise and i'll be level, yes i know im stupid buying near the top but have remained confident it will return. (sooner or later)

Coverage from today c/o GCI


BioProgress - SPECULATIVE BUY
Companies: BPRG
21/12/2005

Drug delivery systems developer BioProgress has upset many investors during its turbulent two years on AIM, but the acquisition of a French drug maker could spark a revival.

This year alone the shares have vacillated between 27.5p and 87p, collapsing after chief executive Graham Hind resigned in April. During his tenure he presided over a doubling of operating losses in the first half of this year to 6.2m. At this rate the group looked like running out of money by the middle of next year, since only 9m remained in the bank at the end of June.

However, the new management seems to be bringing things under control. Annualised costs have now been reduced to below 2m, giving the group considerable breathing space. And todays 12.5m (8.5m) acquisition of profitable French drugs manufacturer Dexo gives the group significant revenues, of 4.4m, for the first time. If things progress as planned, the group could break even next year.

Dexo specialises in bringing innovative medicines, primarily to treat gastric and nasal passage problems, to market. The business is headed by Jean-Francois Sfarti, formerly chief executive of major French pharma Sanofi. BioProgress can now test its non-gelatine and other delivery technologies on Dexos established products. The French market is known to be open to novel techniques of taking drugs and this alliance promises some intriguing developments.

The deal is funded in part by cash of 5.4m, raised from fresh institutional investors at 47p a share. Dexo will accept shares as payment for the remainder. The market has applauded the deal the shares rose 5% and with some major players in the drug world currently evaluating BioProgress technologies, the shares are worth a speculation.

Christopher Spink
Market cap: 70.8m
PE Forecast: n/a
Share price: 57.75p

from lemminginvestor tonight

"The new management has had six months to reconsider strategy and has moved quickly to remove BPRG from any pressure to settle with 'big pharma'on unattractive terms.

The acquisition of strong marketing and generic manufacturing capability gives BPRG the opportunity to keep for itself the high potential margins from this revolutionary packaging, by applying it to its own range of products. These are likely to thrive from high added value and high margins on BPRG's own products - thus replacing low level royalty streams from licensees.

Nothing could do more to raise the attractiveness of a licence from BPRG than the demonstration, however small, of its IP on a daily basis in the shops, surgeries, and hospitals, taking market share from big pharma."

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

This is a great strategic move which took some reading carefully for it all to sink in. This is not just diversification. The psychology is very clever. It will goad big pharmas to settle on better terms because it will demonstrate that BPRG's new entity is immediately profitmaking and does not HAVE to licence them to survive..

As soon as some Dexo product comes onto the market the apparent IPO hype will become a description of real events, and as the advantages of X-Gel are reflected in increasing customer acceptance there will be a scramble to get licensed.

The existing 2m profit from Dexo equates to at least 30m cap (on a PE of 15)for which only 12.5m will be paid. The 17.50 (12m or so) is clearly earnings enhancing compared with the difference in cap value from the 12.285m shares @ 58p = 7.1m added from the placing. In my book that adds 7% to cap value - exactly what was delivered by the price rise today. Strangely matched.

Of course one would expect the new synergy to push Dexo's growth from the unimpressive current 5% to something more dramatic.

http://www.cambridge-news.co.uk/business/news/home.lpf

see link for press coverage

Just to make the link active Bhunt :)

Cambridge News piece

Thanks bones - I aint that clever

B