Conference Call 1/30/2007
I thought the call went very well. I think we are lucky to have Dr Ingolia. He gave a history of his experience which fits exactly with what is needed for HEPI.
He then laid out a 6 point plan for the company.
1. Duplicate the Cameroon Trial results with another trial here in the US. He indicated HEPI had an agreement with a company in Minnesota and the trial was subject to approval by an IRB. Once approved I'm sure we'll hear about it. He seemed to indicate mid February for a start ..... so he is moving quickly. The trial will be on CRP. Trial to conclude in the summer and results by late summer early fall. I got the impression additional trials for cholesterol and antiviral (including HIV) would be high priority but somewhat dependent on finances. My guess if they had the coin right now, they would be on cholesterol immediately.
2. Identify the active ingredients in PAZ. A major item as he felt it would be unprecendented to work towards pharma targets and deals without having that information locked down. He mentioned Yale University at some point during the call and I'm not sure if I heard it correct but I was left with the impression that scientists at Yale were evaluating or working to identify PAZ.
3. A follow on to #2, file additional patents and make absolutely sure they solidify this area as best possible so as to make absolutely sure they have all the protection possible.
4. HEPI priority is to increase nutraceutical sales. Discussed the 70 or so retail outlets in Arizona that now stock PAZ at retail. Hired a sales rep for PAZ to help the marketing of PAZ at retail. Did not mention sellthrough or any sales stats. Also mentioned a vigorous marketing push coming. This included a deal with a new distributor that would market PAZ under a private label.
5. Veterinary applications. Discussed Dr Overbo's work with cows with mastitis where antibiotics had failed to work. I didn't quite catch everything on this but I thought I heard Dr Overbo would be moving towards validating this area quickly. I scribbled that something would be done by the 3rd-4th qtr.
6. Vigorously pursue multiple pharma targets via HEPI Pharma. HEPI Pharma can concentrate solely on pharma applications. The advantage to setting HEPI Pharma was also so that there would be no question this division was strictly pharma and it would make it easier to work with pharma partners. Pharmas generally don't work with nutraceutical companies.
There was mention of Hamilton Jordan working his magic for HEPI. The gentlemen highlighted in the FOX News piece were first up during the Q&A. One gave an impassioned mini speech that he wouldn't be alive today if it weren't for PAZ. He and his partner also indicated they have 1 1/2 yrs of clinical data on their personal illnesses. They indicated a ZERO VIRAL LOAD and a return to normal life.
Overall, I think Dr I laid it out as best he could so far. I think the plan seems pretty much on target. I think it possible, with some funding, that HEPI would have 2 and maybe a 3rd trial going, likely a couple institutions/labs working on the identification of PAZ active ingredients. I got the impression some top people have already looked at it and have not been able to identify it. Might have an NCE on our hands. Lastly, I was struck by a comment from Dr I indicating the PAZ was grown under starvation type conditions, i.e. HEPI does little to provide sustinance. The result is secretions by the organisms which is what PAZ is when filtered off. He indicated this is the same way certain antibiotics are created.
As far as the stock, someone appears to continue to sell. My take on that is ya gotta do whatcha gotta do but I would say that Dr I appears to be the guy in the right place at the right time.
All in all, I would upgrade the stock from "a roll of the dice" to "a speculative buy" with the expectation of seeing the launch of a US clinical trial in 2-3 weeks for a largely unmet pharma candidate. I'd also be looking to see what Hamilton Jordan brings to the table and relationships with more US institutions to turn up the heat on the process of identifying PAZ.
I think an investment here could return 2-5 times your money during 2007.
Amigo Mike