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.

5:26 Fri 1 Oct 2004
BioProgress wins patent from Stanelco
Stanelco's shares have taken a knock on news that the High Court has ruled that BioProgress is the true owner of a key patent.


BioProgress (BPRG) boasts that it has had a '100%' victory after being awarded outright ownership of a master patent that gives it exclusive worldwide rights to the process of making non gelatine capsules using radio frequency.

Chief executive Graham Hind told Citywire: 'We've been vindicated in fighting this it will send a message out to others too.'

Stanelco took out a patent on technology for sealing cellulose capsules with radio frequencies following work it undertook for BioProgress.

The High Court has ruled that BioProgress has the right to this patent and also said Stanelco breached a confidentiality agreement, which is likely to have
to pay damages.

Most significantly for BioProgress, Stanelco (SEO) has a joint venture with health giant Cardinal Health using this technology to make pill casing, which is BioProgress' line of business. However the patent also relates to a number of other patents derived from this 'master' patent, although, it is not quite yet clear how far reaching BioProgress' victory will prove.

Rather astonishingly in its statement about the ruling Stanelco is claiming victory itself.

What Stanelco seems to be basing its strange notion of victory on is that it has been deemed to be the owner of two out of three patent families. It also says it will try to appeal the High Court's decision.

Unfortunately for Stanelco's shareholders the market seems to be taking a more conventional view on events and has sent the shares down 0.5p to 4.875p.

Stanelco's chief executive Ian Balchin said: ' Stanelco's business has continued to develop since the action was brought, with a number of new applications for our RF technology - which do not rely upon these patents. These include food tray lidding, which now represents a very significant part of Stanelco's future projected revenues.'

Hind said he was not entirely sure what the parts of Stanelco's business BioProgress can lay claim to. However, he said BioProgress will now be looking closely at Stanelco to see where its patent is being used.

There will be a further hearing to decide on how BioProgress will take ownership of the main patent and all other patents and patent applications, which are derived from the original filing. The court will also be asked to assess the damages to be awarded to BioProgress for Stanelcos misuse of BioProgress' confidential information.

In a separate announcement today BioProgress announced it would be raising up to 10 million with a convertible loan note on favourable terms. BioProgress already has cash balances of 13.3 million but said in the absence of any serious turnover or profits the strong balance sheet will help negotiations with potential big clients.

BioProgress' shares are up 7.5p to 128.5p.

Details of what technologies Stanelco will actually lose and what it will mean for the company should become clearer over the course of time, but it look as though the implications could be pretty severe. For the time being Citywire would recommend steering clear of the company especially as the ruling raises questions about management

http://tinyurl.com/6dpa6

I am still in BPRG and HOLDING :o) (good luck to all the OLD crew)

ps
i tipped ACE @ 102p now 178p ish SO listen next time :o)

anybody any views on SBRY long term?

aqa

Still in BPRG from 64.5p :)) and have added on the way up!

Jumpin - cut half in the long term account this week at 116p. Running the rest with stop currently at the quid.

The reaminder is now in almost for free. ;-)

Over the road has been quite hilarious on this subject. There's life, death and BPRG. Some people need to get a life! ;-0

I cut a few today.. well you can have too much of a good thing! And need to pay for the daily dose of champers...
;)

But am looking to buy them back again to pay for the next few cases

Hargreave Hale have issued a buy Note.

BioProgress Plc Buy
Company description: Patented encapsulation technology using water soluble film for tablets/pills/strips for dietary supplement, pharma, food and other sectors. The film is non-gelatin based and is heavily patented. Also, water soluble Ostomy Bag technology.

Bull points:
Industry-changing advantages, including new delivery mechanisms, and cost and
efficiency benefits
Claimed major industry shift away from gelatin-based encapsulation, driven by
desire to avoid animal-based materials (BSE, religious factors)
The company appears to be a true global trailblazer
Proprietary nature of machines and consumables
Substantial potential for profits and cash: machines up to $1.4m each,
generating up to $1m of revenues (with high margins) per annum
Deals and relationships with big Pharma players including Wyeth, Perrigo,
Bristol Myers Squibb
Impressive Chief executive; ambitious, imaginative, cautious, flexible,
strong enough to deal with Big Pharma-types
US roadshow in October, leading to ADR listing

Bear points:
Execution risk: BioProgress must close key global customers swiftly, and
prosecute manufacture efficiently
Apparent total reliance on CEO
One of the all-time AIM punter favourites: volatility

Investment summary and conclusion: BioProgress , remains one of the most exciting smaller companies around. The company appears to have truly disruptive technology: this is rare. They have a real shot at a leading position in substantial new markets.

Speculative, but with enormous potential: Buy.

Current Price 119.5p, Code BPRG, Mkt Cap 138m, High Risk

I believe BPRG have complained to the FSA about the inaccuracies in SEA RNS

Firm wins patents battle
02 October 2004

CHRIS STARKIE, EDP BUSINESS EDITOR

A hi-tech Fenland firm has won an important legal battle over the ownership of some of its pioneering technology.

A court has awarded March-based BioProgress outright ownership of the master patent that gives it exclusive worldwide rights to a particular way of making gelatine-free pill coatings.

BioProgress believes there is a massive market for the pill-coatings which are easier to swallow than conventional pills.

The judge found that Stanelco Fibre Optics had misused information given to them in confidence by BioProgress in 1998 when the two companies worked together, and awarded damages against Stanelco.

There will now be a further hearing to determine the level of damages awarded to BioProgress. The hearing will also determine how the main patent will be transferred to BioProgress.

Graham Hind, chief executive officer of BioProgress, said: "This judgment validates the position we have taken during the proceedings. The technology will strengthen significantly our position in the global encapsulation market and adds significant revenue earning potential to our SWALLO TM. liquid capsule technologies.

"By combining the intellectual property in this patent with our existing technologies, BioProgress will now be able to deliver an even more cost-effective, product enhancing, animal free solution to the encapsulation of liquids which is a truly large global market."

Fighting the court case had pushed BioProgress significantly into the red. Earlier this week it revealed a pre-tax loss of 3.8m for the year to June 30 after exceptional expenses of 4.4m.

These included consultancy fees and legal fees associated with the court case.

In a separate development BioProgress has raised 5m via a bond issue. The bonds have been placed with a leading institutional investor by broker Collins Stewart,

The institutional investor will also have an option to subscribe for up to a further 5m of the convertible bonds within the next two years.

Mr Hind said: "This bond issue has enabled us to strengthen our balance sheet further. It also represents a significant vote of confidence in BioProgress, which is reflected in the attractiveness of the terms we have achieved."


http://tinyurl.com/6bzcd

Just like to wish everyone good luck with this one especially nematode as he as stuck with it through thick and thin. I still hold a few tranches of stock but keep away from posting as this one seems to create far more than its fair share of arguments.

cheers GF.

at least discussions have been fairly civilised here unlike advfn

From the Telegraph

A story is one of the most powerful drivers in the stock market

Aim-listed BioProgress is one of the best current examples. This company has developed a range of patented methods to replace conventional gelatine pills, which could revolutionise pharmaceutical drugs and dietary supplements. Its technology has other applications and major companies are signing agreements. Since BioProgress floated on Aim 16 months ago the story has seized attention and created strong momentum in its shares. In nine months, the price soared from 22p to near 160p.


Notice how a story is most potent when a share has little or no financial record. Last Wednesday, BioProgress declared interims to end-June that showed a gross profit of 430,000 on turnover of 992,000, but a pre-tax loss of 3.8m as the company continues to invest in development. Since underlying progress looks promising, this attractive story means that at 131p, a share BioProgress is capitalised at 152m.

But the lack (as yet) of a benchmark for financial value meant bear raiders hammered the shares down to 57p recently. Unless you know what you are doing and can stomach the risks and volatility, this is how private investors become easy meat.

I treat a share as speculative where it is hard to be sure of the financial values. I prefer not to be weighted in speculative shares, as they get hit worst of all in a general financial panic or bear market. You never quite know when or from where the next shock will come.

But enterprising players can still scrutinise a good story and consider what aspects of the business make the risks worth taking. BioProgress continues to win customers and its licensing approach is attractive. Yet valuing the company remains subjective. The shares are a market makers' dream, heavily traded.

To me, a sensible approach is to recognise the extent you want to engage in speculation. It can have a place in your portfolio, so long as you are adept at trading and apply discipline such as stop losses. But avoid chasing a lot of exciting stories, which lead to high transaction costs and a capital gains tax accounting headache. It is all very well thinking: "If only I'd made that switch" in hindsight. You can make astute trades in the short term yet end up no better (or even worse) off, flitting from one story to the next.

As for BioProgress, be mindful that some of its ardent holders promoting the shares do not recognise risks. Perhaps a reason why the shares don't get a lot of coverage is that unless a commentator proclaims: "Five pounds by Christmas!", he is liable to face an angry mob of BioProgress enthusiasts. Life is too short for this.

A story is one of the most powerful drivers in the stock market | Can history not be repeated? | Oil still rising



Can history not be repeated?

Superscape, the interactive 3D software group, is a useful example how a story can adapt and revive.

It is usually best to sell shares in a loss-making company as soon as its story changes for the worse. Superscape's 10-year chart shows the depths to be avoided, even if it means selling into a 20 to 30 per cent fall.

Some investors admit their worst mistakes have been buying a share after it had fallen, only to realise it is a chronic poor performer. Superscape's chart illustrates this, despite showing how alertness to the changing story can yield big gains for traders.

Superscape's technology has existed for some 20 years and it has yet to deliver any profit. The company owes its continuing existence to the goodwill of investors who have kept refinancing it. But this time around I genuinely believe Kevin Roberts and his team have a winning strategy.

Well, I would say that, wouldn't I, as a holder. But like BioProgress the extent of commercial momentum (in recent news, and underlying prospects) improves the probability that this is now a growth share.

Once again the challenge is valuation. At 44.5p Superscape is capitalised at 55m, which initially seems high enough while the market for mobile gaming (the group's current focus) is evolving. It is vast but liable to change, and the time-honoured principle applies that until there is a financial record it is hard to judge how the story boils down to earnings.

Superscape's broker projects a 5.3m loss in the year to end-January 2005 improving to a 700,000 loss in 2005/06. There may be better news; the snag is that it may not be in Superscape's commercial interests to reveal much about the deals it is signing when announcing interims on October 15.

Although the guessing game is likely to continue, I intend to stay with this share.

http://tinyurl.com/6b8s7

i agree with much of what has been said above but it fails to note one thing. All new technology shares will perform between good and bad until the technology comes to the market, if it all it does come to the market. Surely this is the decision one has to make now with bprg and sps, ' are these companies going to turn technology into finance revenue'.

If sps had this technology 20 years (ie 3d games) surely there was not the platform to use that technology, now there is with the introduction of 3g phones AND THE PROMISE THEY SHOULD BE AVAILABLE THIS XMAS. I think both these companies are just starting out on a whole new adventure. nothing is guaranteed but good luck to holders.

Big Al,
Am of course still holding. As on AIM, holding for 2 years cuts my potentially large payment to the taxman from 40% to 10%. Personally I reckon BPRG will get taken out but not for less than 3 and within a year or so. Just back from a sunny week in Benidorm, so with the SEO announcement the holiday seemed pretty cheap ;-)

news out today...buy,buy,buy!!!!

http://tinyurl.com/5a9y3

Erm, isn't this the same news as last week's?

Signed, A Holder.

What news is this? Please advise, price moving today has someone got wind of something?

patience my friends patience...you will be rewarded even more!!!!

More wind this coming week

123.75p today...on the uptrend