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08/22/05 9:00 PM

#22468 RE: nc4s #22466

NC4S: I was unhappy with the delays in bringing forward the IND for the herpes product and the slow pace of advancing the sepsis compounds toward human testing. But after I analyzed the entire picture, I began to feel differently. First, it takes 7 years, or more, to get an approved drug and it cost 500 million to 1.5 billion dollars to do so. CYGX is underfunded and cannot hope to do even a Phase I study at this point. And big Pharma is not giving the big bucks for Phase I or pre clinical drug candidates. They will start to get involved in Phase II studies for drug candidates with great Phase I results and a big potential market. Our sepsis compound would qualify, and so would a more effective effective herpes drug. Second, I did extensive research into DNA vaccines, how they work, which companies were working on them, etc., and found that this was a huge a growing area of research and development. The many companies working on DNA vaccines are all potential customers of the CYGX synDNA. If we can save the vaccine makers a lot of money and provide a safer and equally effective (or more effective) DNA plasmid, they would be foolish not to engage CYGX to provide the synDNA or to license the production process. This could take place within 2 years easily. And the Alfa Laval contract is only $2 million. That is a far, far lesser amount of money to get to a revenue producing product than to develop the actual drugs. So, Malcolm is being cost effective here. Not to mention that this is really our only hope for success. If the synDNA process does not produce revenue in 2 years or less then CYGX will have to continue to sell shares from Lawrence's office at discounted prices. Five to seven more years of Private Placements and we'd have over 200 million shares out there, maybe more. I mean, Amgen only has @ 1.3 billion shares, and Genentech has a hair over 1 billion shares, and those are immensely profitable enterprises. SynDNA is our best and only hope, so Malcolm's strategy to fund later research with synDNA profits is the only answer. You either have to believe in it, and buy or hold...or disagree with the strategy and sell out.
I'll hold my > 200 K shares. The November Vaccine conference will be a huge turning point. Watch.