PALL... interestingI just got a copy of a very interesting JP Morgan analyst report on PALL put out today... Its nice to see JP MORGAN helping their interest in Prometic... and certainly good to know that we might have this market for ourselves for at least a couple of years if things can move reasonably quickly. The fact that PLI took all the time and energy to do all of the clinical testing PRE CE mark may end up holding them in very good stead. This certainly should be VERY supportive of the UK IPO....
Here is a verbatim excerpt from the report :
Palls prion reduction filters are unlikely to be launched before 2008, as Pall develops a next generation prion filter. We have heard from blood industry sources that the clinical evaluations from Pall's Leukotrap Affinity Prion Reduction Filter System have been HALTED in Ireland and the UK due to disappointing preclinical results from animal studies; however, we have not yet verified this information with Pall nor the Blood Services. We were previously expecting the ongoing clinical evaluations of the filters by the Irish Blood Transfusion Service and the English National Bood SErvice, which began in the second half of 2005, to be completed in 2006 and 2007, respectively, with significant sales of Pall's Leukotrap Affinity Prion Reduction Filter soon to follow. Pall mentioned in yesterday's conference cal that the company is working on next generation prion reduction filters and that revenues from prion filters are no included in the company's earnings projections. The company hopes to start clinical trials in 2007, with results to follow in 2008 if all proceeds smoothly. We are left questioning the status of the current generation of prion reduction filters are the source of the technological improvements in the next generation product.
Market and Competition:
Previously, Pall estimated a market of greater than $100 million for prion reduction filters. Pall received CE marking for European marketing in May 2005 and started clinical evaluation thereafter. We note that MacoPharma, a major supplier of leukoreduction blood filters in Europe, is seeking CE Marking for its P-Capt prion reduction filter, which incorporates a prion affinity resin from PRDT, Prometic BioSciences Ltd. MacoPharma has the distribution rights to the prion filter in Europe but not the US.
Background on Prions:
European and American Blood industries have acknowledged the potential for the spread of prions through blood transfusions and are investigating approaches to reduce this risk. vCJD is characterized by neurological wasting, psychiatric symptoms, and eventually death. vCJD is believed to be caused primarilly by the consumption of meat products contaminated with BSE prions. OF the approximately 150 people diagnosed with vCJD worldwide, greater than 90% resided in the UK. The first three cases of human to human transmission via blood transfusion were documented since December 2003. Based on estimates of approx 3800 incubating cases of vCJD in the UK, roughly 380 blood donors may be infected unknowingly with vCJD. European and American blood industries have acknowledged the potential for the spread of prions through blood transfusions and are investigating approaches to reduce this risk. The National Blood Service of the UK recently implemented a costly deferral of blood donations by all persons who have previously received transfusion, for the purpose of preventing an epidemic-like expansion of the disease via blood.