Compass Biotechnologies, Inc. Announces New Strategy and Expanded Focus in Women's Health
EDMONTON, AB, Dec. 22, 2011 /PRNewswire/ - Compass Biotechnologies, Inc. (COBI:OB or "Compass") is a publically-traded specialty pharmaceutical company with a focus on building value in several key market areas - hepatitis anti-viral drugs and prophylactic vaccines, recombinant protein therapeutics called "biobetters", a diagnostics, cytokine reagents and growth factor supplements business for the research community and the biotech manufacturing industry, and a new women's healthcare franchise.
In order to facilitate this new strategy Compass herein announces a new structure whereby it has formed 4 operational divisions that will be directed by Compass management and specialized management teams with expertise to develop and commercialize the various product groupings. Compass will be focused on building value in these 4 key market areas:
- women's reproductive health,
- hepatitis anti-viral drugs and prophylactic vaccines,
- recombinant protein therapeutics called "biobetters", and
- cytokine reagents, diagnostics, and growth factor supplements for the cell culture and biotech manufacturing industries.
"We have been fortunate over the past 6-9 months to be able to establish these four focal points for value creation and we have been able to create subsidiary companies that can participate in product development targeting multiple billion dollar markets". Dr. Joseph Sinkule, the President of Compass stated "the four subsidiaries will be managed on a day to day basis by a team of talented development people with past experience in each of the four franchise areas. The Board and senior management of Compass will provide overall finance, human resources, marketing/sales, medical, regulatory, and all other necessary support to these internationally-located operating subsidiaries. The value growth and revenue-generation created by each of the subsidiaries will be funneled to Compass and Compass shareholders" stated Dr. Sinkule.
A non-commissioned independent analyst report issued by a well known and credible biotech research analyst (Grass Roots Research Distribution) concluded that the company is on track to meet its targets, and the report estimated a share price of Compass much higher than recent price points. The evaluation was made on the basis of having only the hepatitis franchise in play and now, with the addition of the 3 new product subsidiaries, and revenue generation in 2012 from products in the women's subsidiary, we believe the valuation and share price should be much higher. This report is made available on our website at www.compassbio.net.
The activities of the subsidiaries will be funded through the efforts of Compass and a registered offering planned for early 2012. Compass has engaged advisors to raise approximately $5 million as a bridge financing in Q1 2012 leading to a larger secondary offering later in 2012. Garth Likes, the CEO of Compass says "the advisory group has completed due diligence of Compass and its 4-point value creation business model and stated that they believe each operating unit on their own has great financial potential in product development, with some of these units being able to generate near-term revenue while others offering breakthrough products that will take longer to develop. The Compass Board and management team look forward to advising our shareholders on a regular basis of the advancement and progress we are making on raising the capital we need to execute our novel business model and overall business plan" stated Dr. Sinkule.
ABOUT COMPASS BIOTECHNOLOGIES INC.
Compass Biotechnologies, Inc. is a publically-traded specialty pharmaceutical company (COBI:OB) focused on building value and developing products in several key market areas - women's health, hepatitis anti-viral drugs and prophylactic vaccines, recombinant protein therapeutics called "biobetters", and cytokine reagents and growth factor supplements for the cell culture and biotech manufacturing industries. The Company will execute on this strategy by developing near-term revenue generation based on commercializing generic drug products, as well as developing proprietary products that have a significant return on investment but require a longer development times.
Franchise medical products being developed by operating divisions within Compass Biotechnologies, Inc. include:
- the diagnostics, reagents and supplements business, that will provide near-term revenue through sales and distribution of products to researchers and to manufacturers requiring bulk GMP-cytokines and growth factors such as recombinant human insulin (Compass Scientific);
- the hepatitis franchise (C-Pharma Inc.), that will capitalize on the low risk and rapid approval of generics drugs used to treat hepatitis B and hepatitis C, with the long-term upside potential of our preventative vaccines against these diseases;
- the biobetters franchise, (Compass Biotech), which has already attracted interest of international companies that want to work with us to improve biosimilar proteins such as EPO and G-CSF as we work towards improved formulations and better products; and
- the new women's health franchise (GenBioPro, Inc.), that will focus on commercialization of products based on unique medical and diagnostic needs for women around the world.
Compass has previously announced a pact with PanGen Biotech of Seoul, South Korea to provide Compass with a wide array of recombinant protein biosimilars manufactured in "CHO" cells, and a relationship with Arecor Ltd. of Cambridge, England to develop a biobetter, heat-stable formulation of the commercial hepatitis B vaccine. Under an exclusive worldwide license from the National Institutes of Health (NIH), the Company has opportunities to develop HCV VLP vaccine products using patented technology to manufacture virus-like particles (VLPs). The Company is also pursuing a near-term revenue generation strategy by commercializing Compass' own brand of generic ribavirin (400 mg and 600 mg tablets) and pegylated alpha interferon, the mainstays of anti-viral drug therapy used to treat hepatitis B and hepatitis C infections.
Forward Looking Statements
This news release contains "forward-looking statements", as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this current report which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainty of financial estimates and projections, the competitive and regulatory environments, stock market conditions, unforeseen technical difficulties and our ongoing ability to operate a business and obtain financing. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that our beliefs, plans, expectations and intentions contained in this current report are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our quarterly reports on Form 10-Q and our other periodic reports filed from time-to-time with the Securities and Exchange Commission pursuant to the Securities Exchange Act.
SOURCE Compass Biotechnologies Inc.