A recent Huntley’S Report on SBPSOLBEC PHARMACEUTICALS (SBP)...

A recent Huntley’S Report on SBP



SOLBEC PHARMACEUTICALS (SBP) $0.11
Biotech Research
Recommendation: Speculative Buy
No. Shares: 168.4m Avg. Monthly t/o: 7.2m
No. Options: 148.7m Avg. Monthly t/o: 6.8m
Mkt Cap: $22.1m Last Review: 9/6/04 (SCG340)
Rolling Year High: $0.19 Low: $0.12
Business Risk: High Price Risk: High


Progress at last


SBP has been a non-performer for several years. Human clinical trials have taken much longer to be launched than expected and is the major reason for the lack of performance. The potential of SBP's anti-cancer compound, SBP002 however remains undiluted. Preliminary indications of Phase I trials are extremely encouraging: "Analysis of new data from the first group of patients to undergo treatment in the Phase I trial was encouraging with some of the patients showing reduction in their tumours, and a number of patients with advanced cancer had elected to continue treatment. In these cases, the patients had not responded to other
treatments."


Phase I trials are designed to test a drug's toxicity profile, i.e. whether the potential side-effects are too serious to justify progressing the drug's development. The indications of efficacy in the Phase I trial are not considered scientifically meaningful. However when viewed in the context of other "anecdotal" evidence these observations have added significance. Patients in Phase I trials usually have no more than three months to live with cancers that are not responding to other treatments. Tumour reduction in these patients is very encouraging as drug-levels are likely to be increased quite significantly in later trials.


SBP002 has significant potential with encouraging effects on a broad range of cancers with negligible side effects. There are few if any anti-cancer drugs on the market today with such a profile. In many cases the drug damages the immune systems, which ultimately results in other infections and death. Laboratory and animal research as well as anecdotal evidence from the Special Access Scheme suggests SBP002 attacks cancer cells without affecting the immune
system. Some Special Access Scheme patients have exhibited tumour stabilisation many months after receiving SBP002 suggesting the immune system had taken over the fight
against the cancer.


SBP002 also appears to have efficacy against psoriasis, an autoimmune disease, presumably because of its modulation of the immune system. Phase I trials should be completed by December 2004. A topical treatment has been formulated to target what is currently a $200m market, although an effective topical treatment could significantly expand this market. Again striking anecdotal evidence of SBP002's efficacy in this area has been observed. One of the attractions of this line of development is the rapidity and low cost of trials. Phase II should be completed December 2005.


A new US based director has been appointed. He is very well-credentialed both academically and more importantly commercially, having built up a cancer diagnostics business into a quite substantial enterprise. It should be valuable having a Board member based in the US to pursue SBP's interests there.


At current levels SBP is looking very attractive as a speculative proposition

SOLBEC PHARMACEUTICALS (SBP) $0.11
Biotech Research
Recommendation: Speculative Buy
No. Shares: 168.4m Avg. Monthly t/o: 7.2m
No. Options: 148.7m Avg. Monthly t/o: 6.8m
Mkt Cap: $22.1m Last Review: 9/6/04 (SCG340)
Rolling Year High: $0.19 Low: $0.12
Business Risk: High Price Risk: High


Progress at last


SBP has been a non-performer for several years. Human clinical trials have taken much longer to be launched than expected and is the major reason for the lack of performance. The potential of SBP's anti-cancer compound, SBP002 however remains undiluted. Preliminary indications of Phase I trials are extremely encouraging: "Analysis of new data from the first group of patients to undergo treatment in the Phase I trial was encouraging with some of the patients showing reduction in their tumours, and a number of patients with advanced cancer had elected to continue treatment. In these cases, the patients had not responded to other
treatments."


Phase I trials are designed to test a drug's toxicity profile, i.e. whether the potential side-effects are too serious to justify progressing the drug's development. The indications of efficacy in the Phase I trial are not considered scientifically meaningful. However when viewed in the context of other "anecdotal" evidence these observations have added significance. Patients in Phase I trials usually have no more than three months to live with cancers that are not responding to other treatments. Tumour reduction in these patients is very encouraging as drug-levels are likely to be increased quite significantly in later trials.


SBP002 has significant potential with encouraging effects on a broad range of cancers with negligible side effects. There are few if any anti-cancer drugs on the market today with such a profile. In many cases the drug damages the immune systems, which ultimately results in other infections and death. Laboratory and animal research as well as anecdotal evidence from the Special Access Scheme suggests SBP002 attacks cancer cells without affecting the immune
system. Some Special Access Scheme patients have exhibited tumour stabilisation many months after receiving SBP002 suggesting the immune system had taken over the fight
against the cancer.


SBP002 also appears to have efficacy against psoriasis, an autoimmune disease, presumably because of its modulation of the immune system. Phase I trials should be completed by December 2004. A topical treatment has been formulated to target what is currently a $200m market, although an effective topical treatment could significantly expand this market. Again striking anecdotal evidence of SBP002's efficacy in this area has been observed. One of the attractions of this line of development is the rapidity and low cost of trials. Phase II should be completed December 2005.


A new US based director has been appointed. He is very well-credentialed both academically and more importantly commercially, having built up a cancer diagnostics business into a quite substantial enterprise. It should be valuable having a Board member based in the US to pursue SBP's interests there.


At current levels SBP is looking very attractive as a speculative proposition

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I hold SBP