Press ReleaseLooks like the financing is delayed again. Given where the stock is trading at (.32) I now think the financing will be done at a much lower price, say, .20 - .25. Either the stock price is being pushed down for that reason, or, there's no interest in this company.
PharmaGap discusses drug progress at annual meeting
2005-06-22 17:48 ET - News Release
An anonymous director reports
PharmaGap Inc. held its annual meeting of shareholders yesterday in Ottawa and updated shareholders on the company's scientific progress and commercialization program.
Encouraging progress was reported for the company's lead cancer drug compound, PhG Alpha-1. PharmaGap researchers have demonstrated compelling efficacy in vitro when testing the drug on numerous solid tumour cell lines, including breast cancer, non-small-cell lung cancer and neuroblastoma, as well as on bladder, prostate, pancreatic and ovarian cancers, and brain glioblastoma. PhG Alpha-1 was shown to halt the progression of these cancers and induce normal cell death processes (or apoptosis) in these cancer cell lines. This continuing testing program provides the basis for the company's future pipeline of drug compounds for licensing to the pharmaceutical industry and also provides the basis for final design of animal efficacy studies.
In addition to the effectiveness of the company's lead drug in directly treating a range of cancers, PhG Alpha-1 also has been shown to significantly reduce multidrug resistance in colon cancer cells exposed to standard chemotherapy agents. This finding suggests a possible further use for the company's lead drug as an adjunct treatment with standard cytotoxic agents now in use to treat most cancers. PhG Alpha-1 has the potential to reduce the side effects seen in cancer patients undergoing chemotherapy.
In May, the company completed acute toxicity studies in mice for the drug, demonstrating a wide window for developing an effective treatment dosage for PhG Alpha-1 without toxic effects on the recipient. Efficacy studies will commence in mid-August on human cancer tumours in mice in a study overseen by independent researchers at the National Research Council of Canada's animal testing facility in Ottawa.
PharmaGap has established a business model based on licensing its drugs to major biotech and pharmaceutical companies, as each drug reaches the clinical trial stage. The effect of this strategy is to deliver value to PharmaGap and its shareholders early in the drug approval cycle, while increasing the probability of success of each drug candidate through the superior strengths of the established major companies in delivering the human trials process and in manufacturing, marketing and selling the drug when approved. PharmaGap expects its first drug candidate (PhG Alpha-1) to reach this stage of development during the second half of this year. Discussions are now in process with a number of potential licensees, focused at this time on establishing a framework for further testing and data collection.
The company requires additional capital to deliver its development and testing program and is continuing in its efforts to conclude a satisfactory equity transaction. In the interim, the company is receiving required operating capital by way of convertible loans from SC Stormont Holdings, which previously announced a willingness to invest $500,000 in a PharmaGap equity issue as and when such issue is concluded.