Cytogenix (fka CYGX)

[downregul8]

DJ – Thanks for the report.

It seems to echo what cygx has been saying all along. Is there anything that you feel is really new?

It looks like you keyed into the following:

"our ability to produce revenue is capacity-limited"

something that applies to all manufacturing business – whether it’s GM or cygx. The key is not that revenue is capacity limited but rather when they think they will have sales that will match their capacity. The two are very different. Did he say anything that might hint at when they expected to have orders that would put them near capacity?

The reason I’m asking is that in the past they projected needing 10-12 grams for the Simplivar clinical trials. With half a dozen products in the pipeline, they’ll only need 50 to 100 grams over the next four years – not anywhere near the 50 grams a day. In order to hit capacity selling to customers with similar pipelines they’d need close to a thousand of customers to hit the 50gr/day capability which suggests they’re a long way from being capacity limited.

The other part that agrees with what they have said in the past is that the material was for their use first and they would sell the excess. The surprise for me is that they’ve had the prototype for close to a year now – which can produce sufficient quantities for the pre-clinical Simplivar and antisepsis products but the IND submission dates keep slipping. The submissions should not be dependant on the facility. Any mention of the IND progress?