Biotech Values

[scott2987]

OT- CJC
) 02/12 12:02PM =DJ UPDATE: Corporate Update Feeds ConjuChem Stk Run > CJC .T
By Andy Georgiades
Of DOW JONES NEWSWIRES
TORONTO (Dow Jones)--Shares of ConjuChem Inc. (CJC.T) refuse to cool down,
getting a boost Thursday from what one analyst called an "exciting" update at
its annual meeting.
The stock has been doing fine on its own lately, more than doubling since
the start of the year on little news. In Toronto Thursday, the stock is up
another 70 Canadian cents, or 5.9%, to C$12.60 on about 489,000 shares. The
stock is at a 52-week high Thursday.
As reported, the Montreal-based biotech said it will release preliminary
data from its lead drug program early in the second quarter. Final results are
due in June. In addition, it will begin its next Phase II study before
releasing final results from that trial.
ConjuChem's lead product, CJC 1131, is a potential treatment for type 2
diabetes, which affects about 17 million pepole in the U.S. alone. Positive
trial results last June rejuvenated the stock after two clinical failures in
2002 demoted it to penny-stock territory for months.
In a note to clients, Sprott Securities analyst David Dean said the update
was "exciting" and should provide "a tremendous vote of confidence" for
investors. "The ongoing trial is not perfectly blind. People within ConjuChem
see some aspects of the data and therefore must be very confident in what they
are seeing to allow the second study to begin before the results of the first
are available," he wrote.
The current study is expected to tell how frequently the drug needs to be
administered to control blood glucose. Dean said he will consider the trial a
success if once-daily dosing is effective, and a "home run" if twice-a-week or
fewer injections are required.
"We are pleased that management will announce preliminary data, and we
believe that release should be consistent with what we saw from the previous
Phase I/II trial," he said.
Dean also expects ConjuChem will be added to the TSX Composite index in
March.
Seeing less risk attached to the stock, he raised his target to C$21.50 from
C$12 and reiterated his buy rating. Dean doesn't own ConjuChem shares, but his
firm has had an investment-banking relationship with the company.
The second Phase II study ConjuChem plans to start will use its CJC 1131
drug in combination with other commonly used therapies, and Dlouhy Merchant's
Doug Loe said he was "encouraged" this study will begin ahead of his
expectations.
In a report, he maintained his R&D expense forecasts as he expects the
company to sign a co-development partnership before the end of the year, which
would lower ConjuChem's development costs associated with that study.
Loe doesn't own ConjuChem shares and his firm doesn't have an
investment-banking relationship with the company. He kept his buy rating and
C$15 target.
Company Web Site: http://www.conjuchem.com

-Andy Georgiades, Dow Jones Newswires; 416-306-2031;
[e-mail]

(END) Dow Jones Newswires