Micap Share Discussion Threads

[trumpet] 23/8/2004 14:56

MTG,

Thanks for the reply. I think I may not have made the query very clear - I quickly scanned the Micap thread to see if there was any info to show how far Micap had got with encasulating Nicotine specifically. I noticed the Fertin news and wondered whether there were any problems - a problem with gum would likely be a problem with film. Current interest is as a BPRG holder trying to work out how likely a positive outcome would be with the Nicotine/encapsulation/film combination.

Agree with what you say about relative gum/film uses.

[m.t.glass] 23/8/2004 14:48

..Would Micap be signing out other options if there were problems with encapsulating nicotine and embedding with gum products - doesn't make much sense to me if they were...

Gum is a big market already established at someone else's expense, and currently still growing. I guess it makes sense to want to be a part of that immediately, as well as wanting to be onboard whatever alternative vehicle might be coming up alongside and which might sell in areas where gum is unacceptable. And if the alternatives do outpace gum in certain fields, and the gum-marketers decide to switch, it would be handy to be already in a trusted relationship with them. Though I guess gum may still have greater appeal where slower release is an advantage not a disadvantage. Backing every horse perhaps? Micap is about delayed delivery and paced delivery as well as faster delivery. I can even see the possibility of gum being wrapped in a fast-acting film to speed its initial effect

mtg

[trumpet] 23/8/2004 14:23

Anybody like to suggest what other 'active compounds' might be absorbed orally and benefit from encapsulation?

Edit: What's the situation with the Fertin option? Would Micap be signing out other options if there were problems with encapsulating nicotine and embedding with gum products - doesn't make much sense to me if they were.



UK firms plan assault on anti-smoking market

23/08/2004 - BioProgress, a company specialising in the manufacture of films for use in drug formulations, has teamed up with encapsulation company Micap to develop a new type of treatment for those wanting to stop smoking.

In doing so, the companies hope to capture a slice of market worth over $1.4 billion (€1.14bn) worldwide in 2002 and one of the fastest-growing categories in the over-the-counter (OTC) pharma market, according to Euromonitor. The focus of the collaboration is a dissolve-in-the-mouth product that has potential advantages over current treatment options such as gums and patches.
The two UK firms have entered into a six month option agreement to evaluate the yeast-based microencapsulation technology developed by Micap for smoking cessation products (SCPs) based on water soluble films. If successful, this could lead to an exclusive licensing agreement between BioProgress and Micap.

BioProgress has already been working with a US company to evaluate SCPs dissolving films as an alternative to gums and patches, and said that a licensing agreement with Micap could hasten this process and improve the end product.

Micap’s technology could enable the release of nicotine at a faster rate than current delivery methods, which would be advantageous in relieving the acute craving experiences by people who try to quit smoking, according to Mike Brennand, Micap’s chief executive.

Graham Hind, BioProgress’s chief executive, said: “The market for SCPs is growing strongly but there are several cultural and other circumstances where a gum may not be an appropriate or desirable delivery method, while patches can be slower in acting.”

He noted that consumers have already warmed to the concept of ‘in-the-mouth’ delivery – for example for breath fresheners and vitamins – and predicted that if the nicotine delivery project is successful other active compounds may be evaluated for delivery via these combined technologies.

Micap has attracted considerable interest with its yeast encapsulation technology, and just last week was lifted by the news that SkyePharma, a leading UK-based drug delivery company, had exercised an option to use the Micap system in a candidate product.

[jojobubba] 23/8/2004 10:31

Hmm interesting looks like BPRG or Fertin or both may have a use for this technology to deliver the nicotine in an effective and palatable way.

[mintyfool] 23/8/2004 10:07

Glad to see we have a bit more interest in Micap. At £13m market cap, there is a lot of potential upside in this one.

For those of you with a slightly stronger stomach, have a look at the Micap Convertible at 5.5p (MICA.L). It's really a warrant with a strike price of about 80p in June 2005 and about 90p in June 2006. For those of you not familiar with warrants that means you get the right to buy at 90p up until June 2006. OK, the shares are now only 50p, but if they go to 100p then the convertible will go to about 20p (10p of intrinsic value and 10p of time value). If the shares go to 150p, the convert will go to at least 60p. You get the idea!

It's a bit illiquid, but patience would allow 50-100k to be purchased.

Any questions, let me know...

mf

[goldrush] 23/8/2004 09:20

My bet is that Firmenich who have signed one agreement and taken out options for all food flavours will pounce on the co.BPRG have made a smart move IMHO today--and so have MICAP.

g

[jwe] 23/8/2004 09:02

BPRG holder just bought in(i`m sure others are looking) had to pay slightly above offer.I too looked at these after the shares mag tip,glad i waited now.May pull back a little after the spike but happy to be in at this price-a very good medium term bet imo.

[m.t.glass] 23/8/2004 08:48

"...the company is strongly rumoured to be close to announcing a deal with BioProgress..."

That was Shmag six months ago when price was high..
Their timing and mine (in starting this thread) were just a little bit out ;o)

But interest appears to be widening now.

[jojobubba] 23/8/2004 08:32

Looks like a good time to be on this one, like the sound of Micap's technology ie making medications palatable, this should be useful for BPRG as anyone who has tried those awful nicotine products will know they taste bloody cr*p, hopefully not for too much longer!

[psyco] 23/8/2004 08:22

beck> been following for 8 months , have not posted , will be topping up all the way up from here , does anyone see any downside !

rafboy , dont look just buy 12m caps , will move up very fast .

[beckaroo] 23/8/2004 08:20

Good to see new investors Psyco. The days buying already beats other days when there has been news. I think the day the Skyephrama news was announced last week there was one or two trades, so should rocket with a bit more buying. Just to wet your appetite, this is from inpharma.com regarding Skyepharma deal



SkyePharma takes up Micap option

18/08/2004 - Drug delivery specialist SkyePharma has decided to press ahead with the development of new drug products based on an encapsulation technology developed by fellow UK company Micap.

After conducting preliminary testing, SkyePharma has decided to exercise its option to select for further development a number of pharmaceutical products that incorporate Micap's yeast-based system.
Earlier this year, SkyePharma started looking at using Micap's technology for the delivery of hydrophobic drugs in up to 10 nominated pharmaceutical products. It has now selected the first of these products to take into further development, although its identity has not been disclosed for reasons of commercial confidentiality.

Under the terms of the March agreement, ongoing royalties will be payable by SkyePharma to Micap on sales made, or licences of, any option product. SkyePharma will also make milestone payments on the first successful completion of Phase II and Phase III clinical trials and also on the first commercial launch of a product based on the technology.

One of the key advantages of Micap's technology is that it can carry much higher concentrations of hydrophobic compounds – which are poorly soluble and so hard to formulate - than other encapsulation methods.

The technology does away with the need for solubilising additives, and can also combine additional compounds alongside active drugs in the same microcapsule.

[rafboy] 23/8/2004 08:19

psyco - Having a look myself could be a takeover target for BPRG? Regards.

[psyco] 23/8/2004 08:07

Thanks Beckaroo , just joined the club , from the BPRg thread . This comapny will be as bigh as bprg one day , they go hand in hand with all pharmaceutical companies :-)

[beckaroo] 23/8/2004 07:47

This is from inpharma.com a couple of months ago and shows how important the Micap technology will be for the Bioprogress agreement..



Yeast encapsulator could broaden medical gum use

But one major impediment to the broader use of gums in drug delivery is that if you want to deliver an API that is lipophilic (i.e. poorly soluble in water), the compound tends to want to stay in the gum base rather than being released for absorption, according to Dr Gordon Nelson, technical director at Micap.

One of the key advantages of Micap's technology is that it can carry much higher concentrations of lipophilic compounds than other encapsulation methods.

In addition, yeast offers a targeted delivery mechanism, depositing its payload on contact with the mucous membranes in the mouth. Other encapsulation forms rely on physical disruption, which is less effective in bringing the drug to the membranes for absorption as drug is often retained in the gum. Yeast encapsulation also does away with the need for solubilising additives.

Another advantage is that Micap's technology can also combine additional compounds alongside active drugs in the same microcapsule. This means, for instance, that an unpalatable drug could be delivered alongside taste-masking flavours or substances that prevent irritation in the mouth, said Dr Nelson, which should have the benefit of improving patient compliance

[10km] 23/8/2004 07:38

Well looks like there was truth to the rumour after all .

Expect a good % rise today with a fall back after the day traders sell .

Looks like a good deal for both sides if it comes off .

Like the look of this company.

Had a dabble a few months ago at the height of the Bioprogress mania and sold after a couple of days.

[beckaroo] 23/8/2004 07:35

How good is this technology. It seems to be applicable to every area of drug delivery, foodstuffs, and agriculture. The newflow is fantastic for a company this size and the share price still languishes. Hopefully this announcement will stimulate a bit of interest from the Bioprogress invetsors. The 2000 posts a day on that ADVFN bulletin board dwarf our 3 posts a week.

[chrismonty] 23/8/2004 07:14

Edited.....Big boony beat me to it

[bigboony] 23/8/2004 07:13

BioProgress PLC
23 August 2004

Press Release 23 August 2004

BioProgress plc

('BioProgress' or 'the Company')

BioProgress announces option agreement with Micap plc ('Micap')

BioProgress plc (LSE: AIM: BPRG), the provider of innovative delivery mechanisms
for the pharmaceutical oral dosage markets, announced today it has agreed to
enter a six month option agreement to evaluate exclusively micro-encapsulation
technology developed by Micap plc (LSE: AIM: MIC) for smoking cessation products
('SCPs') in water soluble films. The intent is that if successful this will
lead to an exclusive licensing agreement between BioProgress and Micap.

BioProgress has been working with a US-based company to evaluate the opportunity
for SCPs using the Company's 'in-the-mouth' dissolving films as an alternative
to gums, patches and other current SCPs. The exclusive licensing agreement with
Micap, whose technology potentially enables the release of nicotine at a faster
rate than current delivery methods, may enable the US-based company and
BioProgress to develop a totally new and improved product for the global SCP
market place.

According to reports from Euromonitor plc, smoking cessation aids was the
strongest performer in the UK OTC healthcare market in 2003. The global market
for SCPs in 2002 was US$1.4 billion and is continuing to grow driven by public
education campaigns regarding the health risks of smoking and the development of
a range of product delivery formats, including gum, patches, pills and lozenges.

Commenting on the agreement Graham Hind, Chief Executive of BioProgress, said:
'We are constantly looking for complementary technologies which are protectable
and which can add significant value and enhance the performance of our own film
technologies. The market for SCPs is growing strongly but there are several
cultural and other circumstances where a gum may not be an appropriate or
desirable delivery method, while patches can be slower in acting. The consumer
has received enthusiastically the concept of 'in-the-mouth' delivery and we see
this as a further exciting opportunity for BioProgress. The success of this
project would mean there may be other opportunities for Micap's technology in
our dissolving films.'

Mike Brennand, Chief Executive of Micap, said: 'Independent research has shown
that rapid release of nicotine provides significantly quicker relief of
cravings. For this reason we believe that Micap's technology which increases
the rate of release of nicotine, combined with Bioprogress' delivery platform,
could provide an attractive SCP product for what is a potentially vast market.'

Forward-Looking Information.

The Ordinary Shares of BioProgress plc are registered under the US Securities
and Exchange Act of 1934. This announcement contains certain 'forward-looking
statements' within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements are based on management's current expectations and are
subject to uncertainty and changes in circumstances. Actual results may vary
materially from the expectations contained in the forward-looking statements.
The forward-looking statements in this release include statements addressing
future financial and operating results and the timing and benefits of the
reorganisation. Detailed information about factors pertinent to the business of
the company that could cause actual results to differ is set forth in the
Company's filings with the Securities and Exchange Commission. The Company is
under no obligation to (and expressly disclaim any such obligation to) update or
alter its forward-looking statements whether as a result of new information,
future events or otherwise.

- Ends -

For further information:
BioProgress plc

Graham Hind, Chief Executive Tel: [phone]

[e-mail]

www.bioprogress.com


Media enquiries:
Abchurch

Heather Salmond / Alex Tweed Tel: [phone]

[e-mail]

www.abchurch-group.com


Notes to editors:

About BioProgress

BioProgress listed on AIM in May 2003 and is engaged in the research,
development, and design of patented encapsulation systems that use water soluble
and biodegradable films for the dietary supplement, pharmaceutical and other
sectors. The Company's patent portfolio comprises 80 patents within 24 patent
families and has product development agreements and strategic alliances with
several global companies. BioProgress aims to provide a cost effective and
animal-free encapsulation process for pharmaceutical drugs in liquids, tablets
and powders, thereby addressing the needs of the entire market for oral dosage
forms while providing novel delivery mechanisms not possible with traditional
processes.

The Company has also developed patented and licensed the world's first flushable
ostomy pouch that offers a newly enhanced quality of life not previously
possible for the end user. Market research shows the global ostomy market to be
worth $1 billion annually.

The Company's business model provides it with several significant revenue
streams including sales of encapsulating machines and film, plus licence and
fees for research development services.

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.


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

[beckaroo] 17/8/2004 21:54

I see that Micap have the MRSA stuff in their August newsletter, via their website. All looks good promising stuff and the microencapsulated essential oil stuff looks applicable to many other areas.

Also, This is from the SkyePharma board (thanks to AceUK), via Citywire:-

First step for Micap and Skyepharma fails to excite
Published: 11:36 Tue 17 Aug 2004
By Graeme Davies, Companies Correspondent

Drug delivery specialist Skyepharma has chosen the first of a potential ten products to use the microencapsulation technology developed by Citywire tip Micap but the news has failed to budge the share price of either stock by much.

The announcement brings the first crystallisation of a deal signed between the two companies in March which allows Skyepharma to use Micap's technology in up to ten products. The initial deal paid Micap £500,000 with further payments to come as products enter clinical trials and royalties will follow.

Micap's shares (MIC) have added 0.5p to 44p this morning but Skyepharma's (SKP) are up 0.25p at 52.5p, just off their 2004 low of 50p. The link up between the two companies began last year when Skyepharma made a £2 million investment in Micap and Skyepharma founder Ian Gowrie-Smith became Micap's non-executive chairman.

Frankly it would have been a bigger surprise to investors had Skyepharma not actually taken up Micap's technology for development within its own drug delivery systems, hence the rather lacklustre response from the market this morning. The true worth of the deal between the companies will only be seen when products start to progress through trials.

Perhaps the reaction from investors would have been more enthusiastic had the companies deigned to tell us which product has been chosen but it has not been disclosed 'for reasons of commercial confidentiality.'

Pharmaceutical developments are the third string to Micap's bow as it is already pushing its technology for use in food and herbicide applications. This technology involves the encapsulation of active ingredients in yeast cells which allows for selective release and protection from high temperatures and UV light.

Citywire tipped Micap at 52.5p in January and as the vogue for small cap investment continued into the spring it rose as high as 83p but recently it has slipped back below the level at which we rated it a 'risky buy.' However we remain confident its bespoke technology will find its niche in the market and such investments are always likely to be choppy and to take some time to come to fruition.

Skyepharma has been the perfect illustration of how uncertain conditions can be when investing in blue sky pharmaceutical companies. Its share price has fluctuated between 41.5p and 79p over the past 18 months as first the company made a maiden profit then slipped back into losses last year after failing to sign licensing deals before the end of the year.

Both companies retain great potential and Skyepharma expects more products to hit the market this year. Newsflow is always important in supporting such companies' share prices and both will be hoping to report further progress from their tie-up throughout the coming months.

©2004 Citywire

[mintyfool] 17/8/2004 10:38

Thanks Beckaroo.

MT Glass, I think Skyepharma is a good partner because they are smaller and nimbler, so will put more effort into it. If Skye comes up with something really big, they will license it out to big pharma in any case.

mf

[beckaroo] 17/8/2004 09:00

MT Glass, AstraZeneca, Boots and another 'Big pharma' are looking into the technology so the agreement can't be too exclusive.

Mintyfool, I just want more take-up of the technology and another stream of revenues considering the price performance of the share on all of this good news. The fertin trial was to be finished in the summer so think this will be the next piece of news. According to fertin, the drug delivery market via gums is growing quickly but they have problems delivering many drugs this way, so think that it would be a huge market. Not as big as the Skyepharma market but it would give extra confidence.

[m.t.glass] 17/8/2004 08:43

Anyone see any disadvantage in the exclusivity aspect of Skyepharma's involvement? (In terms of preventing uptake by some bigger player). (I haven't checked how many of Micap's processes they have first refusal on). Or is every such uptake by SKP good news regardless?

mtg

[mintyfool] 17/8/2004 08:13

Micap seem to be a roll at the moment. Unfortunately we still don't have a lot of visibility into future revenues or even the potential quantum. I also think that at IPO the shares must have been placed with impatient fund managers looking for a quick buck and so we probably have a list of potential sellers into any strength the shares show. Of course all this will get ironed out in the end, but a stong share price would be nice.

beckaroo, what are you anticipating from a Fertin announcement?

mf

[beckaroo] 17/8/2004 07:55

Thats good news. The number of firms taking out options and then exercising them must been the technology when seen first hand is pretty good. I am still waiting for the Fertin announcement before increasing my stake.

[bigboony] 17/8/2004 07:11

MICAP PLC
17 August 2004


17 August, 2004


SKYEPHARMA EXERCISES OPTION
UNDER AGREEMENT WITH MICAP

Micap plc (LSE: MIC), the technology licensing company specialising in the
microencapsulation of active ingredients in yeast cells, today announces that
SkyePharma plc (LSE: SKP, Nasdaq: SKYE) has decided to exercise its option to
select for further development a number of pharmaceutical products that
incorporate Micap's yeast-based delivery system.

In March 2004, SkyePharma exercised an option to acquire an exclusive licence to
use Micap's patented microencapsulation technology. This allows SkyePharma to
use Micap's technology for the delivery of hydrophobic drugs in up to ten
nominated pharmaceutical products ('Option Products') to be selected by
SkyePharma.

SkyePharma has subsequently been evaluating a number of potential Option
Products and is now in a position to nominate the first Option Product. The
identity of this product has not been disclosed for reasons of commercial
confidentiality. SkyePharma will continue to review additional product
opportunities, and expects to make further nominations prior to the expiry of
the Option Period.

Under the terms of the March agreement, ongoing royalties will be payable by
SkyePharma to Micap on sales made, or licences of, any Option Product.
SkyePharma will also make milestone payments on the first successful completion
of Phase II and Phase III clinical trials and also on the first commercial
launch of an Option Product.

Michael Brennand, Chief Executive of Micap, said: 'The commitment shown by
SkyePharma is a major validation of the potential applications of our
microencapsulation technology in the pharmaceutical area. We look forward to
progressing the relationship through clinical trials and product launches.'

Michael Ashton, Chief Executive of SkyePharma, said: 'We continue to be pleased
with our relationship with Micap. In January 2003, we agreed to evaluate the
application of the Micap microencapsulation technology to the delivery of
hydrophobic drugs. Following pre-clinical evaluation of the Micap technology in
both oral and topical drug delivery applications, we decided to exercise our
option in March this year. We are now able to report that we have selected the
first Option Product for further development. We will continue to evaluate other
candidate Option Products, which we must nominate by the end of March 2005. The
Micap technology further expands our growing range of drug delivery options.'


For further information please contact:

Contact:

Micap plc [phone]
Michael Brennand, CEO [phone]

Gavin Anderson & Company (For Micap) [phone]
Liz Morley/Janine Brewis/Tom Siveyer

SkyePharma plc [phone]

Michael Ashton, CEO
Peter Laing, Director of Corporate Communications [phone]


Notes for editors:

About Micap

Micap is a UK technology licensing company specialising in the
microencapsulation of active ingredients within yeast cells. For further details
visit
www.micap.co.uk
.

About SkyePharma

SkyePharma develops pharmaceutical products benefiting from world-leading drug
delivery technologies that provide easier-to-use and more effective drug
formulations. There are now ten approved products incorporating SkyePharma's
technologies in the areas of oral, injectable, inhaled and topical delivery,
supported by advanced solubilisation capabilities. For more information, visit

www.skyepharma.com
.

About microencapsulation

Microencapsulation 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 hydrophobic drugs

Certain pharmaceuticals dissolve readily in oils or organic solvents but are
wholly or partially insoluble in water. These hydrophobic drugs pose particular
delivery problems since, in order to be properly absorbed by the body, nearly
all drugs need to dissolve in water.


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