"The most exciting technology on AIM right now" - Monday's tip on UK-Analyst is of Medgenics

Medgenics - Making Medicine Personal by James Faulkner of WatsHot.com On WatsHot.com, James provides two hot new recommendations each month, regular updates on his share tips, rumours, book reviews and his daily thoughts and insights into the markets. JAMES WILL BE PUBLISHING HIS LATEST HOT TIP NEXT WEEK. CLICK HERE TO JOIN WATSHOT.COM NOW And here's why James thinks Medgenics is an interesting play... Readers will no doubt be aware of the revolution that is about to take place in healthcare through ‘personalised’ medicine. (If you are not, then click here to read Jim Mellon’s article, which puts the case rather well.) The London market isn’t exactly overflowing with these companies but one in particular stands out. Medgenics has developed an innovative method of delivering proteins into the body that are tailored to the individual: ‘Biopump’ has the potential to be cheaper and safer than conventional treatments, and the potential applications are myriad. Speaking to Medgenics boss Andy Pearlman last week, it very quickly became clear that Medgenics is a little company with very big ambitions. The company’s proposition revolves around its patented ‘Biopump’ technology, which is a potentially revolutionary drug delivery system. It works by taking a very small amount of the patient’s dermis tissue, modifying it to continuously produce the required protein, and then returning it to the body using the firm’s proprietary DermaVac harvesting and implantation device. The company is currently developing three applications for its technology: anaemia, hepatitis c and haemophilia. However, the number of potential applications could stretch to the thousands. Using a patient’s own tissue rather than a synthetic protein has significant advantages. For example, the current treatment for hepatitis c involves regular weekly injections which can cause numerous side-effects, some of which can be very unpleasant. Biopump has the potential to overcome these issues while at the same time being more cost-effective. The INFRADURE Biopumps have been shown to produce interferon-alpha in sufficient quantities to be effective in treating hepatitis c. Medgenics has submitted protocols and obtained approval from the IRB in Israel for two phase I/II clinical studies using INFRADURE, which are under review by the Israeli Ministry of Health. The company believes it will be able to start these trials in Q3 2012. The fact that there are an estimated 130-170 million hepatitis c sufferers worldwide highlights the huge market potential for just one potential application of Biopump. Risk Warning: The tips given here are of necessity, general. They cannot relate to the individual circumstances of investors. Anyone considering following the recommendations contained here should seek independent advice. The value of investments can go down as well as up. Investing in equities can lose you part or all of your capital. Smaller company shares can be relatively illiquid and thus hard to trade. And that makes such investments more of a high risk than larger company shares. UK-Analyst.com is owned by t1ps.com Ltd which is authorised and regulated by the Financial Services Authority and can be contacted at 3rd Floor, 3 London Wall Buildings, London EC2M 5SY. Meanwhile, the firm was granted $4 million by pharmaceutical company Baxter to co-develop HEMODURE, a biopump for treating haemophilia. In November 2010, Medgenics took control of the preclinical development as part of an extension to the agreement, while yields were improved. Although the agreement expired in September 2011, Medgenics has confirmed that Baxter remains interested in HEMODURE and indicates it will seek to move forward with the next stages of collaboration once further technical performance improvements are demonstrated by HEMODURE biopumps in vitro and in animal models. If the company can meet its key development targets by the end of the year, there is every chance it will be able to secure a commercial agreement with Baxter, which is the perfect partner for this product given its c.40% market share ($3 billion market). Finally, EPODURE, Medgenics’ treatment for anaemia, is the most advanced in its pipeline. Following some very encouraging trial results – the majority of patients enjoyed relief from their symptoms for six to twelve months after the implant (as opposed to a duration of efficacy of around a week in most other treatments) – the company has filed an IND (investigational new drug) application for a phase IIb trial, which it expects to start later this year. Discussions are said to be underway regarding EPODURE and other products. Announcing a commercial agreement for any one of the firm’s prospects would be a transformational event for the share price, but it is the potential of Biopump as a revolutionary drug delivery system which is the most novel and exciting aspect of this pioneering little company. I would even go as far as to say that Biopump is the most exciting technology on AIM right now. JAMES WILL BE PUBLISHING HIS LATEST HOT TIP NEXT WEEK. CLICK HERE TO JOIN WATSHOT.COM NOW To access James' latest thoughts on the market, weekly editorials, hot rumours and lots more, sign up to WatsHot.com now by clicking here

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UK-Analyst.com is owned by t1ps.com Ltd which is authorised and regulated by the Financial Services Authority

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