PBTH points to Merck's Elonova as validation for PBTH's CTP technology. From PBTH's Citi presentation, CTP was developed by the Washington University, St Louis, and was licensed to Schering Plough's Organon (subsequently acquired by Merck) for 4 endocrine related indications and to PBTH for all remaining indications. CTP would seem to have a great deal of promise. I wonder whether Organon (now Merck) only saw promise in 4 potential indications, all relating to female fertility indications. I assume that other pharmas checked out CTP but passed thereby allowing PBTH to acquire rights for all other indications. If correct, should investor's have confidence that PBTH has found what amounts to highly promising technology that is applicable along many indications? Why or why not? Is it accurate or reasonable to assume that Organon/Merck passed, and other pharmas presumably did as well, on CTP for all other indications? If CTP technology is so compelling and applicable outside of endocrine related uses, what accounts for the fact more established pharma did not liecense this technology?
(In this regard, please also note that Versartis' March 28, 2011 press release states that they are developing novel therapeutics for patients with endocrine disorders.)
Disclosure: I have a small long position in PBTH.
And another thing:
At Prolor's latest citi presentation at around the 13 minute mark Novik talks about the Factor IX compound:
Facor 9 unlike hGH and FSH (hormones), the factor 9 compound is an enzyme, this is first time they have ever attached CTP to an enzyme, and the results were very encouraging.
I'll try and extended my answer but I am venturing into areas which I know almost nothing about, as my education in Biology doesn't extend beyond a high school course...
When Prolor started, they decided to concentrate on 3 compounds, EPO-CTP, IFB-CTP and hGH-CTP. Now, as far as I understand, EPO and hGH are a part of the Endocrine system but IFN-B is not. The fact that they decided to spend some of what little money they had back then on IFN-B-CTP means that they thought CTP could be applicable to other non endocrinology related proteins. (they probably chose IFN-B because of Havron's background).
I don't know why Prolor decided not to go forward themselves with the IFN-B-CTP which is ready for human testing, but I don't think it's because it's not endocrine system related because it does not explain why they are spending their time and money now on our coagulation factors program. But it could be that I'm just naive.
From what I understand our Factor's program which will hopefully start it's phase IIa program next year could shed more light on the matter, but in the meantime we also have our OBES compound which uses a different tech and of course our hGH compound which can alone (if it works) make us a lot of money.
And as I said previously, Frost thought Prolor is worth while as is, so that gave and continues to give me confidence in being here myself.
That is a a question which I am sure went through every PBTH investor's mind when he decided whether to invest or not. I don't think there is a clear cut answer to that one, but there are some Circumstantial evidence that point in Prolor's favor if you ask me. Those are:
1) Prolor's Fuad Fares was the one to understand the use of CTP in his post doc year at Wash. U.
here is an interview with him in hebrew (I hope google translate can help):
excerpt: Dr. Fares's team wasn't naive. They knew the potential value of their discovery. The university's technology transfer company marketed the patent to Organon, but Fares knew that he will also be able to enjoy the fruits of the discovery. He came back to Israel and started a start up through the Technion.
2) Dr. Frost is on board here as the biggest share holder. Read about this guy's history if you don't already know him. He would not be here if he didn't think CTP had huge potential. In fact Prolor might have not been here if it wasn't for Frost investing millions back when Fares and Novik pitched the idea to him many years ago.
We will all hopefully be smarter and more relaxed after this coming week...