Haviland Enviro Corp V.HEC

interesting HMSL JV and takeover discussions

[barcodewhiz]

I was on the Prometic Life Sciences (pli.sv ) quarterly conference call yesterday. There was alot of discussion about the commercialization of their Cascade blood fractionation process with HEMOSOL. Specifically, Prometic management discussed the high level of interest in the PLI / HMSL process from major industry players like Baxter, Bayer and CSL (and others) Apparently a relatively recent presentation at a fractionation conference in MAY has generated quite a buzz in the fractionation community. Pierre Laurin (CEO of Prometic) specifically said that there is some "very interesting and exciting things going on with respect to the HMSL / Prometic relationship " he also said he thought that the landscape might look very different in a matter of a few months. He pointed to the recent HMSL disclosure that they are "looking at different options" suggesting that they might be close to some kind of a major JV or deal with a strong partner. Obviously a deal with one of the major fractionators makes total sense for Hemosol.... and the great thing about it is it also makes sense for one of the Majors. You have a brand new plant, proven commercialization of the Cascade process... which close to DOUBLES OUTPUT from the current COHN process. You can literally double the revenue from the same Plasma input. Combine that with Hemosol's vulnerable position and I think we have a sound explanation for the recent bounce back in price