Biotech / Medical | Somatogen (SMTG)


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To: sws who wrote (58)2/21/1997 2:07:00 PM
From: Todd King   of 442
 
Steve.

This would likely be Paul Kelly of UBS Securities. His contention is that the market for blood substitutes is much smaller than believed. Also, he believes that there are safety concerns of blood substitutes vs. donated blood, among other things. Probably worthwhile reading, but he appears to be in the minority. For the other side of the issue, I would suggest reading some of the information published by Stover & Associates.

Good Luck.

Todd

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To: sws who wrote (58)2/21/1997 11:09:00 PM
From: jackie   of 442
 
Steve,

How do you know there is an analyst giving Somatogen a 'Strong Sell' rating?

Jack

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To: Michael Collins who wrote (55)2/23/1997 12:54:00 PM
From: Gerald Underwood   of 442
 
Michael,

I think one of the chief factors we should keep in mind is that Optro is essentially being designed as an oxygen therapeutic. As such it will provide a more potent release of oxygen during the critical time in which it is being used.

Also another large factor in projecting market potential is that SMTG may have much better flexibility in designing therapeutics for different types of uses. i.e. a case in point is rHb1.1. From my perception the market for this product could well equal that of Optro in the earlier stages. See Stover's report on Hematopoiesis. Interesting to compare the market size for treatment of severe anemia with projected market studies for Oxy-Rx for year 2002.

In case anyone is interested, Stover's phone no is 516-683-3322.
Their Institutional report is "a New Generation of Oxygen Therapeutics". This is a 38 page report very scientifically and objectively covering 10 of the leaders in this field.

IMHO

Gerry U.

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To: jackie who wrote (60)2/24/1997 6:38:00 PM
From: sws   of 442
 
Jack -

I was looking around under quote.yahoo.com and found some 'research' information for Somatogen. In there it listed one analyst giving SMTG a strong buy, 2 analysts indicating hold, and one labeling it a strong sell.

Steve.

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To: sws who wrote (62)2/25/1997 8:42:00 AM
From: Jim Garrison   of 442
 
Jack, Steve: The 'Research' choice off of the yahoo quote screen is a 'teaser' for the Zack's Investment Service (there's a hot link for a free one month trial at the bottom of the screen). I was suprised to see it off of yahoo - neat web advertising idea.

I use it all the time - IMHO it's a great service but not inexpensive.
jim garrison

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To: borb who wrote (48)2/25/1997 8:22:00 PM
From: John Grandy   of 442
 
biopure's and enzon's products are bovine derived. northfield labs product is not.

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To: Gerald Underwood who wrote (54)2/26/1997 5:20:00 AM
From: Bharat H. Barai   of 442
 
Re: Zymequest

I would like to share my perspective as Hematologist on the issues raised in your message.

(1) ABO-D blood grouping antigens are present on the surface membrane of Red Cells. Hemoglobin is present in the core of the Red cells and has no ABO-D antigens. A person with group O (Universal Donor) is supposed to have neither A or B antigens on the surface membrane of Red cells. Please remember there are other smaller antigens on the RBC membranes, which are not significant for most situations: Kell, Duffy etc. Any treatment of Red cells will have to eliminate AB and D antigens, and preferably all small antigens. This may be feasible, chemically or enzymatically.

However, this solves only 2 problems:(1) We donot have to croos match blood for transfusion, but it still needs to be typed initially to select which units should be convereted to O or treat all blood, regradless of group to save cost of initial typing. Certainly the process of cleansing/chemical treatment will involve costs and nullify the cost benefit of not cross matching.(2) Theoritically, with this process,we may be able to use any blood from any individual, regardless of type compatibility and save " wastage" of blood. In reality, there is always shortage of blood and so called wastage is very minimal. As you mentioned, after it is converted to) from A or B, there will have to be quality control tests to make sure that conversion is complete. This will add further costs.

This process will not solve problem of longer shelf life. With anti coagulant used today: CPDA-2, the shelf life after collection is appr. 6 weeks. This process will not solve the big problems of limited supply, need for storage of blood at 4 degree Celsius, and the BIGGEST concern today: transmission of blood borne diseases.


I still believe, after all thoughts for long time, that only viable solution is to have a Oxygen carrier, that will mimic the physiological role of normal Hemoglobin. In my opinion, there are only 2 serious contenders in the game: Somatogen with Optro-rHb 1.1 and Alliance Pharmaceuticals with Perflubro based compounds. Perflubro has demonstrated Oxygen transport abilities like Hemoglobin. The first generation Perflurocarbons product was marked by Green Gross Corporation, but has been withdrawn from market. It carried very little Oxygen and had very short half life. Alliance Pharmaceuticals (ALLP) is trying next generations Perflurocarbons: Perflubro to address these shortcomings. This copmound Perflubro is undergoing early phase clinical trials as blood substitute. It is in late phases of clinical trial as Oxygen carrier in infants and adults with ARDS-Adult Respiratory Distress Syndrome.Recent reoprts suggest very good benefits in ARDS with Perflubro.

Somatogen's rHb 1.1 is genetically engineered Hemoglobin, identical to natural hemoglobin. Since rHb 1.1 is free solution and not stored in packets of Red Cells, it has no blood group antigens to worry abour( present on Red cell membrane). However, this free solution reduces it half life to several hours, rather than 60 days with RBC containing Hemoglobin. Somatogen has long half life-modified Hemoglobins: rHb 4.11 and r Hb 4.14 in development to address short half life problem. The half life can also be prolonged by other means like combining with PEG(Poly Ethylene Glycol).


Based on available information, I still believe that Somatogen has what the Medical Science needs. It should revolutionaze the practice of Blood transfusion, just as Humulin (genetically engineered Insulin from Lilly) did to treatment of Diabetes, sending Beef and Pork derived Insulins to Annals of Medicine.

Thanks

Bharat Barai M.D.
Hematologist

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To: Bharat H. Barai who wrote (65)2/26/1997 7:30:00 AM
From: Gerald Underwood   of 442
 
Bharat,

Thanks for your expert and informed perspective. This much confirms what I had expected about potential costs involved in the Zymequest process.

It is always a pleasure to read posts from the pros in the field.
We certainly need more of that on this thread and hope you will continue to contribute .

Again, thanks,

Gerry U.

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To: Bharat H. Barai who wrote (65)2/26/1997 10:04:00 PM
From: Todd King   of 442
 
Bharat.

Thanks for your informative posts on Somatogen.

I am wondering if you have read any of the opinions that Paul Kelly of UBS Securities has published on blood substitute companies in general, and Somatogen in particular? He is quite negative, and raises a number of issues ranging from short half life, to toxicities, to high manufacturing costs. In my opinion, the balance of data does not support his position, but would appreciate any thoughts you might have.

Cheers,

Todd

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To: Todd King who wrote (67)2/26/1997 11:00:00 PM
From: Bharat H. Barai   of 442
 
Dear Todd,


I have not read Paul Kelly's opinion about blood substitutes, but I am aware of his totally negative comments about all blood substitutes,including rHb 1.1 of Somatogen.

(1) His point about short half life is valid to a degree. Free Hemoglobin solution has half life of several hours, rather than days. Any molecule, less than 54000 daltons molecular weight is filtered by the Kidneys. However, this solution is still very useful in emergencies and in operatin rooms.

However, science already has solutions to this problem. Many small molecules are combined with PEG-Poly Ethylene Glycol. The combined molecule is heavy and can't be filtered by the kidneys, prolonging their half life to several days. All Hemoglobin solutions: Baxter, Northfield have same problem.

Fully aware of this problem, Somatogen already has 2 more genetically engineered Hemoglobin molecules of higher molecular weight with half life of several days. rHb 4.11 and rHb 4.14. They will follow rHb 1.1
in clinical studies.

(2) About toxicities, I have studied the data on trial with rHb 1.1 so far and toxicities are clinically insignificant. Since the rHb 1.1 is purified from E. Coli fermentation tanks, there has been minor incidences of reaction, probably to foreign proteins. In phase 2 studies, this issue was taken care of by giving Terbutaline to all patients before they received rHb 1.1 solution. Terbutaline is sympatho mimetic compund like Epinephrine and reduces-eliminates allergic reactions. Such allergic reactions can occur with other products like famous anti cancer drug Taxol, derived originally from bark of Yew tree. All patients who receive Taxol, routinely receive Decadron, Benadryl and Cimetidine before being given Taxol, to prevent allergic reactions. So this should not be a significant problem. Also, by further refinement in the manufacturing process, chances of possible allergic reactions can be further reduced or eliminated.

(3) About costs, I am not an expert. But I do remember Chairman of Somatogen, disputing Mr. Kelly's assertion about costs. It is hard to believe that Mr. Kelly is great expert about manufacturing costs of rHb 1.1. I dont know what is the basis of his statement. It is hard to believe that he is more knowledgable about manufacturing process-cost of rHb 1.1 than Chairman of Somatogen.

I dont know if Mr. Kelly is biased or he has convinced himself negatively about about rHb 1.1 due to some strange logic. As a trained and board certified Hematologist, I can certainly say that his first two assertions are vastly exaggerated and clinically insignificant.

Thanks


(Bharat H. Barai M.D.)

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