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Kane Biotech V.KNE 8 cents

a Winnipeg (Canada) microcap biotech company with around 40 million shares. I've been invested in Kane since December. Some links to articles on Kane follow. There is a very low following for this stock and the only discussion board I know of is on Stockhouse. (very few messages)

I believe they're getting close to having revenues from two products.

1. Dispersin B - an antibiofilm product - the only existing product that is able to treat biofilms infections, a pernicious infection that can not be treated by current antibiotics where the bacteria form a film which keeps antibiotics from reaching the bacteria and wound.

Kane licensed technology from a university and have developed a product which the US Army has been testing for six months with apparently encouraging results. We may hear any day on how the tests went. Kane will need to get FDA approval for it, but if the Army pushes for it ( they desperately need something to treat battlefield wounds) they could be getting revenues within six months. The worldwide market is in the billions.

Another product, also an antibiofilm agent, can be used to prevent the buildup of plaque. An Irish firm has tested it for use in dog food and drink to reduce or prevent plaque. Very little is needed in the way of approvals and the testing is quite advanced with possible use/sale within months.

A third product, also for anti-infection is the use of their product on catheters to prevent infection. FDA approval as a medial device is needed (not a drug approval) so that is probably a one year approval process.

The beauty of Kane's business plan is that they license the base technology from universities, turn them into products, get patent protection around the world and then find producer/distributor partners who finalize the product, carry out getting approvals and eventually manufacture and distribute the product with Kane getting a 10% royalty on all sales.

This way Kane's burn rate is extremely low. Something around a million a year. The CEO makes $150,000 a year and they run a very lean ship. You should call Gord Froehlich, a very friendly and upright guy.

I can see them having revenues of a couple of million next year. Even at a PE ratio 20 to 1, this will give them a $1 share price.

I can see them at $10 in five years.

In the meantime they don't need to dilute much as their burn rate is so low and they may not need more than one more financing. They're holding off for now in the hopes of either the Army or the dog productt coming through soon so that their share price may hit 30 to 40 cents.

I'm excited about Kane and may be biased as I have a very large holding.

Here are some articles to read if you're interested.

Interview with CEO http://biotuesday.ca/2010/02/16/in-conversation-with-gord-froehlich/

Website http://www.kanebiotech.com/index.htm Scroll down

Info sheet
http://www.kanebiotech.com/pdf/Kane%20Investor%20Fact%20Sheet.pdf

Army agreement news
http://ca.us.biz.yahoo.com/ccn/090908/200909080552643001.html?.v=1

Princeton study http://zikkir.com/health/13514

Catheter agreement
http://salesandmarketingnetwork.com/news_release.php?pipe=0000ac177000191&ID=2017705&key=Urinary%20Tract%20Infection

Patents
http://www.news-medical.net/news/20091103/US-PTO-grants-third-patent-for-Kane-Biotechs-Competence-Stimulating-Peptide-technology.aspx

Product efficacy
http://jac.oxfordjournals.org/cgi/content/abstract/dkp158

Washington Post article
http://www.kanebiotech.com/In%20The%20News/Washington%20Post%20-%20March%209%202009.pdf

Oral care patent
http://ca.us.biz.yahoo.com/iw/090715/0519021.html?.v=2