BioSante Pharmaceuticals, Inc. (BPAX)

[Just the facts maam]

Global Cancer Treatment Forecast to 2012

The following is an excerpt from the above noted research article.

Global Cancer Treatment Forecast to 2012

High number of unmet needs and an ever-increasing prevalence of cancer has created a gold rush among drug companies to enter the cancer market. Here, launching a drug successfully is risky, however, if launched, commercial gains completely surpass the expenditures incurred, says 'Global Cancer Treatment Forecast to 2012”, the new research report from RNCOS.

Cancer represents the fastest growing therapy segment in the pharmaceutical market. This segment has become the centre of focus for drug firms and investors, and has garnered more attention than any other therapy segment; nearly every mid-size and large pharmaceutical/biotech company today is linked to a cancer pipeline.

Key Findings

-From more than 12 Million newly diagnosed cancer cases in 2007, the number of newly diagnosed global cancer cases is expected to reach over 17 Million by 2020.

-Growing at a CAGR of 12.3% between 2007 and 2012, the global market for cancer drugs is expected to cross US$ 78 Billion by 2012.
If this growth rate is sustainable it will reach $156 billion in 6 years. Capturing only 1% of this market equates to $1.56 billion a year in revenue.

-Cancer vaccines and antiangiogenics will record the fastest growth rate between 2007 and 2012.
GVAX and other Biosante treatments are well situated to take advantage of this trend.

-Drug manufactures are now focused on developing target therapies. These drugs attack target cells and thus limit the severity of side effects.
Biosante through Cell Genesys has been concentrating on this for a number of years and have already taken GVAX to phase 3 trial which was aborted as they have since learned that the cancer within many of the patients had advanced to a late stage where GVAX alone could not help them. Taking what was learned from the phase 3 trials GVAX is now finding success with earlier intervention in combination various other drug (ie, chemo).

-The US is the largest market for cancer drugs, followed by Europe and Japan.

-Drugs for cancer represent the largest therapy area under clinical development; however, when it comes to approval rates, drugs for cancer have the worst approval rates.
By partnering with John Hopkins University Biosante has increased the chance of finding success while diffusing the financial risk. They won't benefit as much from successes but will not be penalized as much by the failures. The successes will set up long term deep revenue streams

Globally, Elestrin, Bio-t-gel and ,yes, Libigel will increasingly generate various revenue streams in the near future (1 to 3 years). The cancer portfolio will create larger long term revenue streams.

With a cash runway of almost 2 years. The business strategy will come into focus as time progresses. Do your own due diligence and just be happy you got in ahead of the crowd.