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.

Yup pae, think its because Im getting older. Fantastic deal though. Just look at those revenues over the first three and six years. Cracking deal.

cheers GF.

Goldfinger
Is the FMC contract the 'major US pharmacutical company' you refered to in previous posts? Or is there more good news to come?

FMC is a worldwide exclusive deal for the NRobe technology, one of four technologies that BPRG is developing under the X-Gel heading. The unnamed US top ten pharma company deal is for rights to (possibly) TABWRAP (or another of the four technologies) but this covers only the US and some other territory (need to check RNS). That deal also entails the building of a film plant in the USA.

BPRG already have the deal with Harro Hoefliger to build and maintain all the required machines.

BPRG also already have a deal with Bristol Myers Squibb (Convatec) regarding the production of flushable ostomy pouches.

All these deals are coming on stream and there are plenty left to do. All will generate royalties as production etc is signed over to the big partners they do the deals with. Sounds like ARM holdings to me (in its early days)! Also based in Cambridge!!

Bones
Many thanks for your info. I think I will hold.

geoffcow:

http://www.citywire.co.uk/partners/default.asp?vid=62507&PageNumber=1

More big contract news to come with a US company. To sell now would be silly.

cheers GF.

-> BONES

"The Letter of Intent provides that the US company will purchase an exclusive
license for one of the BioProgress XGEL(R) dosage forms in a specific market
sector and for the geographic areas of North America and the European Union."

The agreement also includes setting up a film manufacturing plant in the US, which will supply film to other US customers using the other usage forms.

It was "anticipated that a formal agreement will be completed on or before January 31st 2004", so it's now past its Sell By. Word on the street is that it's expected *very* soon and may dwarf the FMC deal....

Oh boy.....But hey, what a day today!

http://www.uk-wire.com/cgi-bin/articles/200311240835023956S.html

Thanks publess. If they follow up with this next deal quickly, there could be a stampede for shares. Of course, the hard work of getting the lines up and running and producing film en masse needs to be well-managed but there's no doubt this is a case of years of R&D suddenly blooming into real commerce very quickly.

Don't forget that BPRG floated on AIM last May at 16p. Before that you could only trade them on the OTC Nasdaq bulletin board and they changed hands back in 2000 at $6 (4+) on the potential which is now so much nearer.

Latest Lemming investor piece on BPRG.

I bought more today

:-)http://www.lemminginvestor.com/BPRGfmc.html

THE OTHER BIG DEAL I WAS TALKING ABOUT.

Bioprogress rockets on FMC licensing deal

Published: 12:41 Wed 4 Feb 2004
By Algernon Craig Hall, Secret Buying Correspondent
Email to a friend

Bioprogress's shares have leaped on news that it has finally concluded a licensing deal with FMC BioPolymer, which is expected to be worth at least $160 million (87 million) over the next six years.

FMC has acquired an exclusive worldwide licence until 2023 for Bioprogress's (BPRG) NROBE drug casing technology.


Bioprogress's chief executive Graham Hind said: 'This deal marks a very significant step in our development and is a deal which we expect will deliver a significant and increasing revenue stream to Bioprogress through to 2023.'


In the first six years following the commercialisation of Bioprogress's NROBE machine FMC has given assurances to buy a minimum number of the machines and is expected to spend at least $80 million.


FMC has also contracted to buy at least half of its NROBE film supplies from Bioprogress during the first three years.


The total value of the deal will depend on how much demand FMC receives for the NROBE casing but Bioprogress expects it to bring in at least $160 million in machine and film sales plus royalty payments.


Hind told Citywire the financial benefit from deal should really begin to come through in 2005. He also believes clinical trial work by a big pharma interested in using NROBE should set up excellent barriers to entry that will act as a barrier to competition.


Bioprogress announced it had a letter of intent from FMC to licence its NROBE technology last October. This was followed in December by a 7.3 million fund raising at 50p to finance the development of a film manufacturing facility.


The first NROBE machine is expected to be delivered in April and the film facility should be in production by the end of the year.


Bioprogress has three other casing technologies in development which it is also working on deals for and it has invented a flushable colostomy bag which it hopes will be ready to launch by the end of the year.


The market is clearly excited, and there is even talk among traders of another licensing deal in the very near future.(nb, did say there was one).
Bioprogress's shares have leaped 19p to 106p this morning.ENDS.

Like I said theres another potential massive deal just around the corner.

cheers GF.

stupid to sell it could be out anytime.

GF - that shows how lazy the journalists are! The other deal that is the subject of this "talk" has been old news for about 3 months since BPRG stated in an RNS that they are hoping to conclude an agreement covering USA and EU by 31 January!!!!

This is why so many people are in this stock at 40p - 50p........

Bones thanks for that clarification, cheers GF.

Nice to see a new closing high at the end of the week (109.5p). Bodes well for next week.

Interesting article from lowpeg from rival bb,


Thought Id post my thoughts on where Bioprogress currently is for people who dont already know all the technologies involved and give people an idea of the sheer scope of Bioprogress. I know many of you have been here for centuries but some i'm sure are BPRG virgins. ;-)


You may want to refer here http://www.bioprogress.com/html/products/products.html to refresh yourself on the different technologies.

The FMC deal is a worldwide licence for the NROBE technology, some could argue now that the current share price reflects this technology (NROBE) and the ongoing existing Ostomy deal with Bristol Myers Squibb products out 2nd half 2004. My feeling is that the figures stated in the FMC deal are very conservative for safety of promising too much and FMC will be exploiting its Licence for maximum profitability which also happens to maximise royalty payments for Bioprogress. I'm sure FMC are aiming for 3 or more times these estimates so I think there is scope for more price rises based solely on these two current deals
.
OK so that deals with 2 of Bioprogress's technologies, the good news is that there are still 4 more current technologies available for license. The next in line is TABWRAP technology. This technology has been associated with the expected deal with the unnamed Global OTC (over the counter) Pharma mentioned in letter of intent 24-11-03. The expected deal is for a European and North American License for the OTC segment of the market. This leaves licences available for OTC segment in rest of the world and prescription segment still available all over the world, so huge scope there for more royalties.

Next technology is SEPTUM where Graham Hind (CEO) has been quoted as saying SEPTUM is the real jewel of all the technologies. No deals to date have been made for this technology.

There is also the SWALLOW Technology which has no deals yet signed and is the technology in patent entitlement dispute with Stanelco plc. I fully expect Bioprogress to win the legal action but no-one really knows, so to be safe lets put licensing for SWALLOW on the back burner.

Last is Non Ingestible as in uses for cosmetics, toiletries, household products, garden chemicals and recreational paintballs. No deals have yet been signed for this technology.

Oh yes and all the technologies use X GEL which Bioprogress will produce at its Film plant in March, Cambridgeshire. Other film plants are to be built in other countries under licence agreements from Bioprogress who will receive royalties on all production.

Then there are new technologies which no body knows about but hey, they are a research and development company and I bet they use X Gel.

The technologies currently ready for licensing and production.
1st - Medical (Ostomy)
2nd - NROBE,
3rd - TABWRAP,
These technologies are officially (as in no news released stating otherwise) still in development.
4th SEPTUM,
5th SWALLOW.
6th Non Ingestible

My opinion of how valuable each technology is for Bioprogress, no 1 having the most potential.
1 SEPTUM
2 TABWRAP
3 NROBE
4 Medical (Ostomy)
5 SWALLOW
6 Non Ingestible

The fact that only one licence to date has been signed for only one of their technologies in my opinion does not reflect badly on BPRG. They are only now just emerging from final development stages with their technologies and I am confident licences will be snapped up as and when they become available.

The fact that FMC have finally committed to BPRGs technology shows their view that BPRG have world class products not to mention Harro Hoefliger giving it the thumbs up.

The scope for licence royalties coming in from many world class Pharma companies operating in various market segments and in various geographical areas is huge. The Prophets comments earlier, on future share price values, may not be far off. That said the numerous licensing opportunities and sheer scale of dealing with many different companies hammering out the best deal represents a lot of hard graft for Bioprogress management and staff not to mention keeping research and development of new technologies at the forefront. This will obviously take time and wont happen overnight.


What I am trying to say is that we aren't in outer space yet, we're just taxiing down the runway ready for take off (obviously in a spacefaring flying machine thingy)

Obviously this is all in my opinion but the assumption I have made are certainly not pie in the sky hopes and dreams.

'You've got to be in it to win it' :@ )

Interesting days and weeks and months and years ahead.

Can only help, people refer to RNS what does this actually stand for, I am fairly new to investing and it seems to be linked to news... Dont want to create new thread just for this, can anyone help?

AdieH - RNS - (EDIT - thanks to publess for correction): Regulatory News Service - which supply the official Stock Exchange announcements, I believe is the term!

I read a quote from the BPRG CEO that the FMC deal was very complicated, hence the delay in announcing it. The inference was that the next deal (and more) is a bit more straightforward.

So, I am hoping for the OTC deal to emerge in the next week or two. It will be a big name so I hope they can say who. It is for exclusive use of another of BPRG's technologies covering the USA and the EU only. It entails the OTC company to build a film plant in the USA which will then also be availble to service BPRG's other US customers. BPRG have already said they are talking big numbers (in the RNS in November)

This leaves deals for non-USA/EU territories for that same technology to be done. It leaves the other two technologies to be commercialised. There is also ostomy which is already licenced to Bristol Myers Squibb and the product should roll this year.

All exciting because you have seen what "completed deal" and a big name and figures does to the share price and stirs the newspapers into action.

The good thing is the share price often moves slowly at first after the announcement. After FMC, you could have picked up BPRG in the early 80p area for a good couple of hours after the open (up only a few pence). You don't have to risk all on the hope of something. You can wait for the announcement and move quickly on the open!

But, as always, Do Your Own Research!

--> Bones/ AdieH

Don't mean to be picky, but it's the Regulatory News Service - Reuters is another thing entirely.

One place to go for news is: http://www.uk-wire.com/

This is the one to have your money on, comment from Killick one of my brokers and yes the BIG NEW contract is imminent any day now. I will let you know, had to check out no last minute problems but there arent, ITS MASSIVE, and I mean MASSIVE. Added a 'warehouse full' this morning after the confirmation.

Anyway heres thr brokers note...........


Following on from our comment on Bioprogress yesterday, we were able to hold
conversations with company management and representatives. The contract
announced which, they estimate could be worth around $160 million over six years,
looks to be conservative, but sticking with that for the time being, they are talking about
the machinery components of the contract (which will be manufactured by the world
leader in this area) being worth a gross profit of a minimum of 35% and the royalty
stream being significantly higher. With a low operating overhead which will not need
expanding far, this contract alone has the ability to support the current valuation. We
suspect others will follow shortly. The stock is seeing good two way business at around
1 a share where the company value is 100 million. Once the selling dries up, we see
a the stock well set for a further significant move to the upside.


cheers GF.

Any day now.will have to top up on any tree shake today by mm!!!Thanks GF,as ever very efficient.Hope the break in Spain has re-invigorated you.