Forum Archive Index - September 2001

["G Stolwyk" <stolwyk@wave.co.nz>]

Readers: Please read the Disclaimer at end of page.

 

My post of Thursday, 27 Sept. 2001, refers. It lists some websites, including PTD's. Another web page from PTD:

 

http://www.peptech.com./HOME/home.html 

 

This discusses TNF ( Tumour Necrosis Factor ). This is a pro-inflammatory molecule which plays a role in a wide range of diseases, including Rheumatoid arthritus and Crohn's Disease.

 

The Peptech anti-TNF proteins are used in the treatment of these diseases. 

 

PTD (Peptech) started  TNF research in 1988 and the current patent portfolio is attracting attention as these provide entry points for further developments.

 

PTD is now waiting on the possible granting of an important US patent, possibly, later in October.

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They also develop Animal Health products.

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Of great interest is PTD's up to 36% holding of Diversys, a well known company in Cambridge. This company developed the single domain antibody which is only 10% size of a normal antibody ( full domain); referring to the relevant patents:

 

The company says: " These Patents are incredibly relevant to anyone creating antibodies, antibody fragments or single domains in a test tube and are therefore of tremendous commercial value to Diversys.

 

"Single domains represent the basic building blocks of antibodies and it should be possible to string them in many different ways to make a wide variety of products".

 

" The ability of single domains to bind the active sites of enzymes and receptors may make them particularly useful for blocking viral and bacterial infections as well as for the treatment of many human diseases".

 

The following quoted comments are from the CEO of PTD, Mr. Stephen Kwik, FCA : 

 

" These antibodies will need smaller dosages and as the present cost of these medications is high, more people could afford to buy these drugs. There is also less wastage".

 

" This is significant because this smaller antibody can  penetrate easier and therefore can be applied as a cream, through slow release direct injection, inhalers and eye-drops."

 

" For example, ' Remicade' can treat eye disease and we feel that by delivering the single domain TNF antibody with eyedrops would be more effective than with a drip, as is currently the case." ( Using a full domain antibody ).    

 

Diversys has been asked by PTD to develop single domain antibodies against TNF; these will become the exclusive property of PTD. " The TNF alpha drug we would be working on, has a market reach including the treatment of Arthritus, Crohn's Disease, Asthma and many other diseases".

 

Question: " If this drug will be in the pre-clinical stage by the 2nd quarter of 2002, how long will it take to get it through to commercial viability?"

 

PTD: " Depending on how 1st stage clinical trials go and generally speaking, we will be looking at commercialisation for royalties within 3 years ( 2004/2005 )".   

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PTD also receives ongoing royalty from Centocor and Knoll who were granted a licence for the use of one patent.

 

Knoll's clinical III trial data of a monoclonal antibody against TNF, drug: " D2E7 " is highly promising. It could reap a solid market share in the inflammation related diseases for Knoll. This drug is described as the crown jewel of Knoll's pipeline and could achieve peak sales of Euros 1 billion.

 

PTD will also be looking for royalties from this drug within the next 2 to 3 years.

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It is highly likely that  PTD's future income will be from ever increasing royalties streams and also from advanced products developed by them and clinically trialled:

 

" If we were to take the pre-clinical drug technology to a clinical trials stage, we would be obtaining a double digit royalty ( about 20% ).

 

"In terms of royalty of say 20% on the estimated $US 10 bill. Single Domain TNF antibodies market by 2005, the revenues Peptech (PTD) can receive, will be considerable." 

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 PTD: Financial year ends on Sept. 30. Shares: 146 mill. No debt. Retained profits:$ A 65 mill. Ongoing royalties keep coming in! 

 

Those are my opinions!

 

Gerry

Holds PTD and thinks that PTD and Diversys are a perfect combination. Also, at the current price of $ A 2.30, PTD could be a better investment than GEN ($ A 2.30). PTD could become a takeover proposition.

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Disclaimer: I cannot be held responsible for any omissions, misstatements or any misinterpretations by myself or any reader, in this post. This post is not a substitute for the contents of the PTD web site and the reader must go back to that site to obtain the true statements or facts or any other matter pertaining to PTD. Much content of this post is from announcements made by PTD and from one interview and may not be on the PTD web site. Readers are not asked to buy, hold or sell the somewhat speculative PTD shares and to do so will be entirely at their own risk. I do not work for PTD.