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.

In the past people have been concerned about Regen being a one product company but things have now changed.

This product could be in clinincal trials early next year and has massive potential

The indications are that the AD and Parkinsons products will be in clinical trials in 2007.

The nutra version of Colostrinin is expected to be on the shelves next year.

Meantime the strategic importance of the GCPUL acquisition has been demonstrated by virtue of keeping research costs in the group. I also wonder whether it gives Regen access to breakthroughs with other drugs and the chance to get involved at an early stage. e.g. was todays association anything to do with a contact through them?

Interims are due this month and there is quite a bit for us to be updated upon including the first real glimpse of income that is coming from GCPUL.

The nature of the likely treatments uses for this drug ought to see Regen getting some media coverage as well which could also have a knock on effect of interest in Colostrinin.

Gatenbrink - again, good news but all of the gains from the recent fantastic announcement have been given up over the last couple of weeks. What's it going to take to actually get these motoring and to stay motoring?

queen1 - your guess is as good as mine. How much positive news can they release before it goes up and keeps going....?

No idea....but it's dropping again today :-(

why are they going up today?

The mm's started to move the price up first thing and continued through the morning. All told 5 of the 6 mm's moved up today. I think two of them increased twice.

There is a city presentation now on the website. This took place last week and seems to have targetted institutions. There was nothing major within it hence no RNS. The interesting bit seems to focus around Zolpidem about which the presentation reads fairly positively and in the summary states that they will be going to trials in 2006 so they seem to have moved on beyond the feasibility study.

If you haven't seen it have a look at the Regen website. There was nothing about the nutra partner which we are all waiting to hear on. The year has seen them getting progressively more positive about a deal from looking for, to serious negotiations to discussing terms but so far we have not heard about someone taking a pen out of their pocket and signing. N. America looks like it should be first but it would just be nice to see it agreed.

Two late 500,000 buys bode well for tomorrow. Fingers crossed there is some positive news on the way.

It would be good to get the positive news before Xmas!

I have seen a very positive broker note from Regens brokers JM Finn & Co. I got it yesterday and it indicates that " Zolpidem project gets green light". Apparently they are going to exercise their option to acquire for a "modest sum payable in shares". It goes on to say "Regen is gearing up for a phase 2a clinical trial of a low dose formulation of Zolpidem in early 2006" and then "we believe Regen will not have difficulty in finding a partner". IMHO Zolpidem looks a very exciting drug and the fact that it has already been used as a drug for other uses is probably why it can jump straight to this stage of trials.

On Colostrinin nutra it says "Management remains confident that a partnership for Colostrinin can be concluded in early 2006 allowing a product to be launched, at least in the US, as early as Q4 2006". It also says the vetinary version should go to trials in early 2006.

On valuation It says Regen has a current enterprise value of around 4 million. "We believe even a very cautious projection of sales of Colostrinin would support an enterprise value of around 30 million. This valuation assumes no contribution from the pharmaceutical programmes which should have even greater potential in the longer term, especially given the Zolpidem project"

All very reassuring and might explain why we are beginning to see a bit of life. No doubt there should be an RNS coming out when they actually exercise the Zolpidem option which should attract some attention and will mean that Regen will no longer be a one product company which I think has been a concern to some in the past.

Good luck to all

Thank you for the information Gatenbrink, all very positive !!

RGT is continuing to do well this week. Impending news?

Price is moving. Volume picking up. Various bits of news anticipated which could send us well north of here.

A partner for the Colostrinin nutra? News on Zolpidem - exercising of the option, entering trials with a partner and a hefty signing on fee? Either of those would be fantastic news.

There is definitely a positive air around Regen at the moment judging by various boards so hopefully our patience is soon to be rewarded.

I hope so Gantenbrink. I got in at 2.30p so still some way to go to break-even on this one. But I still believe it will come good...

queen1 - I bought loads in the 3 to 4p range but managed to drop my average to just below 2p when the price fell as like you I felt sure that this would come good in time. If a certains poster on advfn is correct then we have no worries as it will be 28p by May. I wait to see - although in his defence he has predicted a number of recent events with surprising accuracy.

28p by May? And what does he base that on?!!

Well there is your news.not quite as exciting as i thought . we bought sceincom .should have averaged .

queen-- a consolidation I expect. This is ashare with a nominal value of 0.1p, so it wouldn't do any harm to make it a 10p share. But that wouldn't be much good for us would it?

Not really. Still, there seems to be an air of optimism around these last few weeks so perhaps we will be pleasantly surprised...

Who knows where that chap gets his info but I wouldn't rush out and buy on the back of it though. Saying that he has predicted the last two RNS with surprising accuracy as well as changes in online trading limits.

Putting that aside it is good to have another product on the go at Regen and also one that is going to jump straight into phase 2. Zolpidem is already an established drug on the market for another use so that must tick quite a few boxes in respect of forthcoming trials for issues such as side effects etc.

GCPL are to undertake the phase 2 trial. This explains the logic for their acquisition for when opportunities such as this come along it means that rather than having to pay a 3rd party all of the research money stays inside the group.

The trials are to be carried out in South Africa which is where the initial positive effects were noticed when prescribing the original Zolpidem to stroke victims with insomnia. As a result there is already a knowledge of it there and you will note the wording in the release:-

"In this study we will be comparing a novel formulation with a standard marketed formulation in known zolpidem responders.' "

and

"A significant body of 'open' clinical case observations has shown that zolpidem can normalise areas of brain dormancy secondary to a primary lesion in brain damage conditions e.g. stroke, traumatic brain injury, vascular dementia and Bell's palsy"

So they already know that it works to an extent and have a certain amount of data available before going to trial. The fact that they are referring to known Zolpidem responders indicates to me that they possibly already have at least some of the volunteers who will be required for the study so we could see fairly swift movement.

"The clinical effects of this dormancy reversal have been restoration of consciousness, swallowing, co-ordination and motor function after stroke and traumatic brain injury" - This line from the release makes a pretty powerful statement.

It's a pity they didn't head up the release with something a little more exciting. "Regen to acquire Sciencom" - result - who are Sciencom? "Regen to acquire rights for potentially blockbusting drug which could bring relief to stroke victims" that would I feel have had a much more positive effect.

All in all a pretty positive outlook though and meantime we still await news on the CLN nutra licensing partner which they have indicated a number of time should be in early 2006 with sales in Q4 2006.

Shame the price has dropped back a bit today but I guess it's a case of buy on rumour sell on news so there were always going to be profit takers but for long termers the prospects seem a lot better now IMHO.

Thanks for that, much appreciated.

What do we think of the results chap? Steady as she goes?