slow progress

Here's a bit of moral support for all those SBP holders. I spoke to Steve Carter a couple of days ago, I've followed this company for about 2 years but don't have a position at the moment.

The general perception of Steve being an honest guy having a go definitely holds. He's a pleasure to chat with and I'm quite confident that his intentions are well and truly above board.

My primary interest is the delays, the progress of the science and Orphan Drug Status.

Delays. About 2 years ago, Feb 2001, I attended a presentation Steve gave at Huntely's and like most people was suitably impressed. I asked him what 3 things he'd like to achieve by years end. The answers were completion of Phase I, Orphan Drug Status and a deal with a major pharma. Now quite obviously Steve's timetable or understanding of the processes involved in these areas was poor. In talking about delays with him a couple of days ago he admitted that they have been frustrated by their failure to meet milestones. I asked if their intention was to start Phase I by the end of this year and the answer was, "yes, that is our best intention but I've had my fingers burnt before putting my name to deadlines". Ok, so I'm not impressed by the inability to meet milestones but am impressed by the honest and candid nature Steve explains the situation. It's tough work getting a drug to market, no would argue the toss.

Progress of the science. I asked Steve in all this time since we last met at Huntley's has the science progressed both behind closed doors and in the public domain. His reply was an emphatic yes, both behind closed doors and via a couple of recent ASX releases such as the immune response recently discovered. It's easy to assume that during delays with regulatory and ethics committe approvals that things grind to a halt but it was relieving to know that Solbec have been diligently improving their understanding of their science.

Orphan Drug Status. Steve's answer was "I have absolutely no problem with Solbec receiving ODS (meaning they will receive it). We have spoken to the FDA who have indicated that our drug is a prime candidate for ODS and fast track and have encouraged us to take this path". These statements can be taken or left, Steve's judgement has been off in regards to the commencement of Phase I but again I believe his intentions are 100% honest and if he is confident ODS will be achieved I think it goes along way to showing this. ODS is not a deadline orientated process, it's more of a yes, no decision. This is why on this I am more confident of Steve's judgement.

In addition to the above Steve spoke about taking the ego out of the equation and just doing what has to be done to get this drug to market. This should be a characteristic held in high esteem by all shareholders because this is the sort of attitude that will lead to success.

I've always said that if I invest in a spec stock then I can accept losing my money if the company fails for the right reason. In Solbecs case this might mean a raft of different things, but things that are associated purely with the science and physical limitations of the drug, not the inadequacy of it's directors. My opinion is that if Solbec does fail it will be for the right reason but I am quitely confident that the results seen in Special Access Scheme patients will be repeated again and again in Phase I and II trials. With that Orphan Drug Status will be attained, with that a very successful investment in a junior biotech.

Good luck.