Micap Share Discussion Threads

[matthu] 30/11/2004 12:55

Why has the price been dropping?

Continuing turnover in 2003 was £ 900 k, with £ 275 k in 1st half of 2003.
That leaves turnover of £ 625 k in 2nd half of 2003, and if we assume that £ 500 k related to the Skyepharma deal, then that leaves at most £ 125 k of recurring turnover in the 2nd half of 2003.

Turnover was £ 120 k in 1st half of 2004, so no increase period on period.

Operating Loss in 1st half of 2004 was £ (836) k, so they need to increase their recurring turnover at least 7 x before being profitable.

Their net funds at end of Mar 2004 were £ 2.29 m
their net decrease in cash for the period was £ (851) k
leaving £ 1.44 m net funds at 31 Mar 2004.

At the current rate of burn, this will last only 10 months.

In order not to have to refinance the company, they will need to double their recurring 6-monthly turnover every six months, for at least the next 18 months.

Can they do it?

Announcements expected in remainder of 2004 / first half of 2005

Visible increase in sales resulting inter alia from further agreements with Firmenich and takeover of Applied Analysis
Licensing agreement with Fertin.
Additional filings of patent applications in the fields of fungicides, herbicides and pesticides
SKP having selected additional pharmaceutical products for evaluation.
Possible announcement on start of pre-clinical trials with AstraZeneca on any of a number of drug candidates
Possible announcement on start of pre-clinical trials with another Big Pharma on a specific drug candidate
Results of feasibility study into specific biocide applications with Arch Chemicals
Start of field trials into use of encapsulated tebuconazole to reduce mycotoxin levels in wheat grains with world leading agrochemicals company.
Start of field trials into use of MICAP formulation of biocides by leading speciality chemical companies (including Arch Chemicals).
Results of Phase I Clinical Trials into effects of encapsulated oils and biocide combinations against MRSA.
Commercial relationships established with at least one partner in nutraceutical, biocide or agrochemical market.

Announcements expected in second half of 2005

Further increase in sales resulting inter alia from agreements with Firmenich and Fertin
Further commercial relationships established in nutraceutical, biocide and agrochemical markets.
Further filings of patent applications in the fields of fungicides, herbicides and pesticides
Discussions entered into with BPRG on licensing agreement for use of MICAP technology with SCPs
Results of pre-clinical trials with AstraZeneca on any of a number of drug candidates
Result of pre-clinical trial with another Big Pharma on a specific drug candidate
Commencement of Phase I clinical trials by AstraZeneca
Commencement of Phase I clinical trial by another Big Pharma
Enrolment underway for Phase II clinical trial against MRSA
Feasibility study into use of antimicrobial technology for urinary catheters?

(Timings on all of the above are my own estimate, which may be wildly wrong. The list is also bound to be incomplete in parts and over optimistic in others.)

Clearly there is a lot of risk associated with the above timetable.
But if most of the above events happen as expected, and assuming no unexpected legal costs, then the company may just reach reliable profitability within eighteen months.

But in the absence of any newsflow, IMHO the share price will continue to fall.

[matthu] 30/11/2004 12:27

Trading at 34 p and below today.

[matthu] 29/11/2004 16:27

25 k trade just gone through at 35 p

[matthu] 29/11/2004 14:59

sp down 2.5 p today, volume almost negligible.

[matthu] 28/11/2004 16:39

New weapon in superbug war - cashews
from The Mail on Sunday
Cashew nuts could become a vital weapon in the fight against hospital superbugs, including MRSA.

Health Secretary John Reid has ordered experts to examine if oil from the nuts could control the antibiotic resistant germs.

Cashew oil, used for centuries in traditional medicine, works as a natural antibiotic that could kill the germs which are resistant to more common drugs. Potential products aimed at improving hospital hygiene will be announced this week, but Tories claim the Government isn't treating the superbug epidemic seriously enough ...

This sounds like it could be related to MICAP? From the Interims we have the following:

One of the most exciting areas of progress has been in the potential use of encapsulated natural oils and plant extracts in the treatment of medical
conditions. In July of this year, we commenced a Clinical Trial of our Micap
encapsulated biocide and essential oil product for the control of MRSA. We are
currently in the process of recruiting up to 40 patients who have been diagnosed
as having MRSA on their skin, and in addition to the safety factors usually
considered during Phase 1 trials, this study will also investigate the efficacy
of the product on patients in the trial. The length of the trial will be
determined by the speed at which we are able to collect suitable volunteers.

[beckaroo] 09/11/2004 08:08

I thought the results read well with a good cash positive acquisition, good new applications of the technology and all current application still going strongly.

However, the fact is that current stock market investors are very conservative and don't like start-up or loss making companies so I guess we are all in it for the long-haul. I trust the management to deliver.

[m.t.glass] 09/11/2004 07:41

...products using Micap's technology have now reached supermarket
shelves...

...We are confident that our revenue opportunities, together with rigorous cost
control, will enable us to attain profitability within the horizon provided by
our current cash balances....


Click on link within NEWS panel above for full results/report. Or go via company website. (Too big to post here in full)

[goldrush] 05/11/2004 12:01

2 buys and we are up a penny.IMHO this could be the bottom and any decent buying could propel us forward and especially on futher good news which cannot be far off.

g

[m.t.glass] 21/10/2004 14:56

Good to see it getting noticed.

This one-legged bounce could peter out again of course, like the mexican-wave effect we've seen when previous announcements have prompted a one-day mention.

This time the bounce has been stronger - so there is room for it to subside a little without returning to the floor perhaps. The shape of the next dip and next peak may tell us whether, this time, enough analysts and tipsters have taken an interest sufficient to create ongoing coverage and enthusiasm.

Maybe the green lobby might latch onto the advantages of the targeted release of chemicals - such as fungicides/insecticides (in wooden buildings for example) which are activated only when conditions indicative of a threat occur. (Like when dry timbers concealed from view become wetted enough for the risk of fungal attack to kick in, or when gasses given off by specific bugs are sensed) in preference to wholesale treatments.. although I guess the coshh regulations might not allow unpredictable/unexpected activation. (PS. That's just me thinking aloud -not something Micap already offer or intend, as far as I know)

[rkjones] 21/10/2004 11:56

Positive mentions in Times,Mail and Ind. today.

Expect Shares mag to give update next week.

[rambutan2] 20/10/2004 14:55

thats better.

[rkjones] 20/10/2004 11:47

Ok had a nibble this morning.
Shareprice and chart simply does not reflect the good progress
and positive announcements made over last few months.
Should comfortably return to floatation price and if it finds
favour with tipsheets/investors could retest 12m high.IMHO

[chip leider] 20/10/2004 10:18

no comment on the apparent DIRECT competition to this technology ricky???????????????????????

[ricky9] 20/10/2004 10:16

This should go to 50p on any decent buying volume.

[chip leider] 20/10/2004 07:56

heard a piece on bbc yesterday about scientists who had developed way of encapsulatying in sugar cells - they were talking about the transportation of medcine.

[m.t.glass] 20/10/2004 07:42

"...Discussions are currently underway with a major multinational..."




MICAP PLC
20 October 2004


Micap plc

20th October 2004

Micap plc announces positive results of a recent study on use of Micap
encapsulated fungicides to improve control of fungal damage to cereal crops.

Micap plc ('Micap', LSE: MIC) today announces new business opportunities in the
area of agrochemicals.

Further to the recently-reported success in the evaluation of Micap technology
for herbicides, promising new results have now been obtained in fungicide
applications. Micap has funded laboratory trials at the University of Nottingham
comparing the performance of a commercial fungicide formulation with a
formulation based on Micap technology. The target for the study was the ear
blight fungus Fusarium, which represents a significant commercial threat to
cereal farmers.

The outcome of the study showed that a standard Micap formulation performed well
compared to a commercial product for stem based disease control. Additionally,
in mature plants, when wheat ears were infected, the Micap formulation of the
fungicide tebuconazole outperformed the commercial product, resulting in an
increased grain yield.

In addition, subsequent studies have demonstrated a substantial reduction in the
levels of Fusarium mycotoxin present in the grain of Micap-treated plants. This
is a likely reflection of the benefit of sustained release of the active
ingredient. The use of the Micap encapsulation technology for the delivery of
fungicides offers the potential to control mycotoxin contamination of grain to
below 0.75ppm, the target level currently under review by the European Union.

Michael Brennand, Chief Executive of Micap, said: 'We are delighted at these
encouraging study results and look forward to the continued development of
fungicidal applications.'

Dr. Steve Rossall, senior lecturer in plant pathology at Nottingham University,
commented: 'The results produced by the Micap technology in the Fusarium study
were very promising, particularly since the formulation of the Micap product had
not been optimised.'

Discussions are currently underway with a major multinational to carry out field
trials incorporating the Micap formulation of tebuconazole used in the study.

Ongoing studies include the evaluation of Micap formulations of a number of
azole fungicides against their commercial equivalents, whilst trials of seed
dressing applications are currently at the planning stage.



Contact:

Micap plc 01925 664200
Michael Brennand, CEO 07966 341801
Michael Norris, Finance Director 07966 341802

Gavin Anderson & Company 020 7554 1400
Janine Brewis

About Micap
Micap listed on AIM in August 2003 and is a UK technology licensing company
specialising in the micro encapsulation of active ingredients within yeast
cells. For further details visit
www.micap.co.uk
.

Micro encapsulation is a process whereby tiny droplets of liquid or particles of
solid material are coated with a continuous film of polymeric material.
Microcapsules have several benefits, including conversion of liquids to solids;
separating reactive compounds; protecting substances against environmental
factors; and improving the material handling properties. Micap's unique
proprietary technology involves using killed yeast cells as natural capsules to
protect the active ingredient. Yeast encapsulation can protect active
ingredients against high temperatures, the effects of the sun, pressure and
degradation through exposure to the air. The natural affinity of yeast cells
for mucous membranes can also be exploited for targeted drug delivery.


About Fusarium blight

The global market for agrochemicals is around $30bn and is split into three main
sectors: herbicides, fungicides and insecticides.

Fusarium is a stem-based pathogen of cereals which primarily affects the ears,
causing reduced yield and importantly a contamination of the grain with
mycotoxins, which are potentially harmful to people. Fusarium Ear Blight
infection was estimated to cause a loss in excess of $2.5bn to farmers in the US
between 1998-2000 (Ngenje et al, Oct 2001).

Mycotoxins

Mycotoxins are toxic chemicals produced by moulds growing on food commodities or
animal feedstuffs. In order to protect public health, they are subject to
government regulation in most countries.



This information is provided by RNS
The company news service from the London Stock Exchange

[rambutan2] 19/10/2004 18:15

thanks again ricky,
and for the management - welcome to the weird and wonderful world of the stock mkt!

[ricky9] 19/10/2004 16:35

rambutan2

I can't help you with product revenues.But I can say that the owners of Micap can not understand why the share price is so low.I bought another 5000 at 39 yesterday.

[rambutan2] 19/10/2004 14:47

thanks ricky.
you sound very informed.
are you feeling upbeat about micap?
any ideas on the sort of rev that firmenich is/could produce?
that looks the big one to me at the mo?

regards
rambutan

[ricky9] 19/10/2004 14:24

Unilever sold the yeast technology to Micap, ten days later they were on the phone asking if they could use it.Unilever now have to pay Micap to use their own technology.How,s that for good business sense.

[rambutan2] 18/10/2004 16:43

finally and up day - if only a little up.
i do think that it sees rather cheap at these levels.
my cnvs are currently way out of the money.
but plenty of time for a rapid change in mkt cap to happen though.
lets hope that the management are better at delivering than at our big cousins at skypharma.

came across a piece on unilevers product develpt place in holland within which was a mention of the five years that they spent on yeast tech. i assume that that was what we bought off of them? wonder why they didnt go with it??

regards
rambutan

[relwood] 14/10/2004 12:25

I have been interested for some months but have yet to buy. I am very pleased that I did not jump straight in. But why it continues to fall is a puzzle to me. I will watcha nd wait but I am convinced that this is a money winner in the long term.

[wezzley] 14/10/2004 11:56

I am also suprised at the fall here. heard few months ago that one should not worry on this & that the forthcoming newsflow should be very good indeed (non specific). then again, this could be the news that has allready come out since then...