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.

So we are back on track again. The recent NOIT sale of 3500000 shares has cast a shadow over trading with a number of people jumping ship in concern at a falling price and no explanation. Now we know there was nothing sinister to do with the company just NOIT needing to raise funds then normal service has resumed. Already up 9% today and people are still buying. I bet there are people kicking themselves that they didn't buy a couple of days ago but then IMHO there's a lot more in this one yet.

"Shares in Regen Therapeutics jumped 0.25p to 2.875p on talk that the company is set to announce some good product news. Speculation also mounted about a possible US fundraising. "

This appeared in various tipsheets yesterday so should attract some attention.

Hopefully they are correct and the good product news will be to do with successful scale up which will be one big step forward.

So everyone knows about the presentation and we have now news on the US. Further more comprehensive RNS coming out on Monday. Interesting few days ahead.

Strange the comment about no further financial information being discussed other than cashflow and estimated expenditure. I can only assume that is to allay the fears of those who were worried that it might be leading up to another issue/ cash call.

So Monday will see another RNS relating to

1. Drug development.
2. Nutraceutical development.
3. Conducting clinical trials.

That's what we want to know about. I think most of us knew that it would probably not be announcing a licensing partner however hopefully we will hear about scale up and toxicity testing as well as likely timescale for a nutraceutical on the shelves. Indications had been that we should see satisfactory scale up by the end of the year and perhaps a nutraceutical in 2005. Confirmation that they are still on target or fairly close should create a bit of positive activity.

Meantime the US. Put colostrum into any search engine and see where it takes you. 9 out of 10 times to the US. They seem to love any sort of colostrum product out there so this new exposure should spell good news.

Anyone know how this US arrangement will work? The RNS does not mention any new shares being issued so can we assume that any purchases will be coming straight from existing stock - if so that is great news.

This link which was kindly found by Dave on iii takes you to the adr info. http://www.adrbny.com/dr_profile.jsp?cusip=75885C105. Effective date today. Just asked Jeeves and it appears it is 4.58 in New York so can we assume there might be movement in about 3 hours?

If every one ADR equals 200 Regen shares then surely each time a purchase is made then the equivalent number of RGT shares will need to be purchased over here and held somewhere as security. If so then once trading starts we should see some fairly big movements. Every time someone buys 1000 ADRs it equates to 200000 rgt shares if my maths is correct. If I'm right in my thoughts above then we could see some fairly rapid movement.

Great run up to Christmas and roll on Monday

Found this on the web. It seems that the purchase of ADRS will create a parallel trade here for relevant number of RGT shares as no extra stock has been issued. I don't know how or when these trades will show up on our screens although we can track them through Daves link earlier. It will be nice to see the first trades in action over there later today.

Definition of American Depositary Share (ADS)

Convenient way to invest internationally
Listed and traded in the U.S.
Currency Risk

An American Depositary Share ("ADS") is a U.S. dollar denominated form of equity ownership in a non-U.S. company. It represents the foreign shares of the company held on deposit by a custodian bank in the companys home country and carries the corporate and economic rights of the foreign shares, subject to the terms specified on the ADR certificate.

An American Depositary Receipt ("ADR") is a physical certificate evidencing ownership in one or several ADSs. The terms ADR and ADS are often used interchangeably.

Convenient way to invest internationally

ADRs provide U.S. investors with a convenient way to invest in non-U.S. securities without having to worry about the complex details of cross-border transactions; they offer the same economic benefits enjoyed by the domestic shareholders of the non-U.S. company. ADRs are issued by a U.S. bank, such as J.P. Morgan, that functions as a depositary. Each ADR is backed by a specific number or fraction of shares in the non-U.S. company. The relationship between the number of ADRs and the number for foreign shares is typically referred to as the ADR ratio.

Listed and traded in the U.S.

ADRs can be listed on any of the U.S. exchanges, such as the New York Stock Exchange (NYSE) and the American Stock Exchange (AMEX), and may be quoted for trading on the National Association of Securities Dealers Automated Quotation System (Nasdaq), the NASD's over-the-counter market, or the pink sheets. They can also be privately placed and traded as Rule 144A securities. Finally, the concept of the ADR has been extended to other geographical markets, resulting in structures known as global depositary receipts (GDRs), international depositary receipts (IDRs), and European depositary receipts (EDRs), which are generally traded or listed in one or more international markets.

Currency risk

Although ADRs are U.S. dollar denominated securities and pay dividends in U.S. dollars, they do not eliminate the currency risk associated with an investment in a non-U.S. company

Thanks for the excellent research and information on the US deal, takes away a lot of the mystery. Here's looking to a great result early next week, and for future growth, all the best,
Steve

Anyone know why the recent decline? I thought things were bubbling and news was expected of further pogress in testing/research and in finding partners for the future?

Probably no real reason, there are always going to be those that get fed up with the lack of action and move on.

Anyone have any views on today's results announcement? Personally I think that the reduced losses, first sales and potential acquisition targets makes for encouraging reading. However, the SP has taken a bit of a beating.

q1- Yes the results look good but two days ago an institution sold 1 mill shares. Admittedly thats only 20,000 but why would a fund manager want to slide out just before some good results? Anyway the company is still telling a good story so I think I'll keep with them for the next year or so. There is every chance that the sp will be 4 or 5p by then. At todays price there is not much point in geting out

Realistic - if you check out the NOIT (the 1M sale) news you will see that they seem to be selling out holdings in various companies and yet not buying anything so probably can't read too much into their sale here.

Todays fall especially earlier I think purely resulted from frustrated holders selling out. There had been an anticipation that because the company had indicated that they would be making a preliminary statement in Feb prior to the results in March then there would be some good news possibly re scaleup or licensing partner. Unfortunately this was not the case and so a few bailed out which caused a drop and others therefore panicked and sold out as well taking it down further. Once the initial panic was over the price crept back on good buying levels this afternoon.

In reality things are really no different today to what they were yesterday. The price has been hampered by the Dec issue which has meant that Hoodless had a lot of stock to offload. Level 2 until today had shown that only they were on the 2.25 offer with 4 others on 2.75 so once that stock cleared the price was set to rise. Ironically the drop today has created more buys than sells so some more the issue has gone aiding our cause.

Another frustration has been the ADRs. The announcement was made back in Dec that the process had been set up and gave the impression that trading was starting in the US then. In fact although the ADR process had been set up the brokers still had further paperwork to do to be able to trade and as I understand it they are just sorting the final details with NASDAQ now which is why as yet we have not been advised who the US brokers will be. I am sure there will be significant buying in the US when trading does start as colostrum is already a recognised health product out there. The fact that the Bank of New York need the shares lodged with them to create the ADRs on a 200:1 ratio means that applications for ADRs will have a direct impact on the UK stock and will hopefully clear the last of the issue and move the price up.

The results show encouraging figures. the GCPUL income was based on just a few weeks and so should equate to around 500,000 next year on a like for like basis. The cash in the bank and debtors total approaching 2million. So with a likely expenditure of around 1.5 million next year they have enough funds for the year already and a million left over. As a result I am puzzled as to why they needed to issue so many shares in Dec. It would seem, based on what we've been told so far that they don't need all that money "now". If they do then we have more to hear perhaps on the acquistion front.

There were many references to "broadening the base" of the company in the results and I think this is perhaps to address the concerns of those who have worried about Regen being a one product company. It's great to have a larger companybut I hope they don't lose sight of the reason most of us are here which is to see a Colostrinin product on the shelves -that is where the real money lies.

So we still wait for news on Scale up, the actual start to ADR trading, the finalising of a licensing partnership and any other acquisitions. All of these will see the SP lifted from this low level and hopefully such news won't be too far away.

Sorry a bit of an epic but I haven't posted here for a while. Good luck to all holders.

Gantenbrink - Excellent post and well worth the effort - Many thanks.

Thanks q1.I had hoped that the ADRs would have been trading by now.Good post,perhaps post of the week! I'll print it out to sustain me on the bad days when there are few trades.I'm glad that I did'nt panic now.

Gatenbrink- Sorry all the credit is down to you,only noticed when I went back and re read your post.

And I was going to take all of the glory...!

Thanks for your kind comments.

Interesting that one of the trades this morning was an MM buy at 2.1. Why would they be buying now?

Anyone still in on this one?? I had a look last August and stayed out at the time. Interesting applications for the product but cash and one product kept me away. Is this any closer to take-off? What are the upsides and downsides from here of RGT?

Andy
I have some tucked away. Just watching and waiting. Could be anything

Me too jeffmack. Very small holding that wouldn't be a disaster if I lost it all but would be most pleasant if it were to take off...

This is better...

LONDON (AFX) - Drug development group ReGen Therapeutics PLC said it will begin to research a treatment for Parkinson's disease, after its Alzheimer's drug Colostrinin was found to protect cells that are depleted by the brain degenerative disease.

In a statement released to coincide with the group's annual shareholder meeting, Professor Peter Jenner, the chief scientific officer of Proximagen Neuroscience PLC that conducted the study on ReGen's behalf said he recommended Colostrinin be evaluated for use with Parkinson's disease sufferers.

Chairman and chief executive Percy Lomax said: 'This is a very encouraging finding. We believe that not only does it confirm the general neuroprotective effect of Colostrinin that we are now developing as a nutraceutical, but it shows that a second peptide, naturally present in this complex, has activity in its own right.'

Separately, he said the company is in talks with a number of potential licensing partners. 'The company continues to believe that a partnering deal in nutraceuticals is possible in 2005, with revenue from sales in 2006 and a partnering deal in pharmaceuticals in 2007.

ReGen added it is 'firmly focused on developing its revenue-producing business'. It is pursuing a number of opportunities in this area, and sees the contract research area as a potential path for expansion.

So a positive day on the markets. Hopefully the start of an upward trend.

You will have seen all that happened at the AGM from the different releases during the day. Did anyone else get there from here? There were a few faces I hadnt seen before but most had gone soon after the end so I never got the chance to meet them.

The meeting started with PL asking if anyone had any questions. I obliged again and again and again hence it lasted an hour and a half rather than 1/2 hour. On this point though I know a number of people have criticised PL but there can't be many chairmen who would answer as many questions as people can ask at an AGM and I stand by previous comments that he comes across as both genuine and acting in our best interests.

Moving on the key facts for me were:-

The studies re Parkinsons now mean that they have at least one more string to the bow. The fact that they have a synthetic peptide that seems to work means that by virtue of it being synthetic they can readily make it and potentially this could be licensed out at an early stage to generate royalties in the same way as a treatment for Alzheimers. So there could be 2 different revenue streams. We wait to see if the research shows up any other areas which it might also help. No doubt the more scientific amongst us can comment further on the scientific value of the findings/ progress so far

There was a lot of emphasis on the comments in the statement regarding a deal within 2005 for the nutra with sales next year. There was also mention that this might not necessarily involve the partner/s doing the manufacturing. I got the impression that we could be looking at different partners for different regions and in some cases this could involve Regen doing the manufacturing. Whatever the situation my personal take was that we should have at least one of these deals signed up before the end of the year. If there are to be sales in 2006 ( and this was mentioned a few times) then they will need to have the deal done, material being produced, supply lines established and marketing taking place so I cant see that it can be too late in 2005 for the deal ( but that is purely IMHO). I know that Runtus has done the figures on potential nutra sales before but this could be key info soon if for instance the first deal is for the U.S. as if we get say 5% royalties of say $50 100 mill sales then an income of 1.5 - 3 million a year would put a rather different perspective on the share price.

I queried news re scale up and very much got the impression that this will go hand in hand with news of the first license deal why I dont know. I pushed the point but didnt get anywhere. Id be interested to know if anyone else was there how they interpreted this point.

ADRs apparently can be bought but Regen were not expecting any activity as yet as they felt it would take a while before they got going. Seemingly they were available from a couple of weeks ago although I will follow up a contact that I got for Pali and see whats happening over the next week or so. (Apparently when British Land launched their program it took a year to get going and they are a higher profile company)

GCPUL is still planned for large expansion. Again nothing specific on this but I got the impression it wont be long before we hear more in this area. I seem to recall that at present it is generating about 500,000 p.a for Regen so expanded this might go some way towards the current cash burn of 1.5mill p.a for the group.

Resolution 9. This was an area I was concerned about as it seemed to indicate we would pay if a director messed up. When I queried, it would seem that the company would pay to defend an action if it was brought against a director but if the director was found guilty they would have to repay the company and on this basis I went along with it.

I specifically asked if there was any intention to issue more shares in the immediate future as I had been upset that last we met that no mention had been made of the issue that was to take place the next day. I was assured that there were no imminent plans. Mention was made that they were budgeted up to the end of 2006 albeit in a separate discussion to my issue question so I dont know whether a further issue is factored into their budget over the next 18 months.

All of the above as you will appreciate is purely my own impressions of the meeting and information that was publicly discussed relayed in good faith. I know last time another holder who attended had a slightly different take on some areas which is always useful so if there was anyone else there I would welcome your thoughts.

All in all quite a positive day. The share price has risen some 28% on what is essentially still a small volume of trades which perhaps signifies that there is not too much liquidity in the stock so hopefully a bit more buying will continue the upward movement. I did comment on the fact that I would like to see the Directors buying a bit more stock as a display of their confidence. That I am sure would bring a significant uplift. I appreciate they have to be careful about inside info etc but there must be a point where they can buy and after an AGM would seem as good a time as any we shall see.

Meantime we wait to see if the press pick up on it at all. as a prelim tonights Stockmarket Reporter said:-

"Shares in ReGen Therapeutics jumped 0.42p to 1.92p after the company said that it was now committing resources to Parkinson's disease research after a positive study of its Colostrinin compound. Colostrinin and a synthetic homolog of Colostrinin-derived peptide showed neuroprotection in a cell line model of Parkinson's disease, it said. The company also said that it was engaged in a number of ongoing negotiations with potential licensing partners."

Let's hope tomorrow sees a continuation of todays positive rise.