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Here is the OTC Journal
we promised with a new profile on a company, which has the potential to
make you rich. It is a once-in-a-lifetime ground floor opportunity with
Billion
Dollar Potential over the next several years. As part of our agreement
to cover this unique situation, Members of the OTC Journal Investment
Community have the Exclusive First Look. No other publication
has featured this situation yet. You will have a competitive edge on the
rest of the investment community. Information is Power, and it is our mission
to make you powerful.
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New breakthrough drugs yield profits
for investors with little regard for market conditions. Therefore, we have
decided to introduce Astralis LLC to our Members. We believe this
stock will trade well despite the recessionary market environment as more
information unfolds to the investing public and the pharmaceutical community.
In our opinion, a perception will
form that this new drug could generate billions in world
wide annual sales. This level of demand could place the market value of
the drug into the stratosphere. Eight years of clinical trials on three
thousand patients provides evidence that this vaccine is truly a revolutionary
breakthrough with enormous market potential.
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Recommended
Trading Strategy |
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After reading our profile, if you
find you agree with our conclusions, we would like to offer our opinion
on a prudent investment strategy. Decide how many risk dollars you are
prepared to commit to the investment, and start with only 25% to 50%.
If
you are opposed to risk read no further. This investment opportunity is
not for you.
Over the next 60 days, more evidence
should unfold concerning the potential for this new drug. This could come
in the form of investments or alliances with major pharmaceutical names,
which would act as confirmation of the commercial potential. As each of
these events occur, the risk factor diminishes.
If you make additional purchases
at higher prices, your average cost will still be below the market. If
the stock has traded lower it will provide a more attractive entry level.
This is only a suggested strategy; the choice is yours.
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Fall
Profile: Hercules Development Group (OTC BB: HDVG) |
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Stock Listing: OTC BB: HDVG (HDVG.OB
on Yahoo!)
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Shares Issued and Outstanding:
37.5
million
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Estimated Public Float: 5 million
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Closing Price and Volume: $3.66 on
2.2 million shares
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Market Capitalization: $137 Million
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Web Site: http://www.astralis.cc
(under development)
Today, shortly after the market opened,
Hercules
Development Group issued a press release indicating the company had
signed a definitive agreement to acquire Astralis LLC, a New Jersey
based Biotechnology Company. Click
Here to read the entire text of the press release. The full text is
available at the end of this profile.
Astralis has developed PSORAXINE
(Psoriasis Vaccine), a new drug to treat the skin condition known as Psoriasis.
According to the press release, 3,000 patients have been treated to date
with PSORAXINE. 638 have experienced total remission, 1,000 have
experienced 70% to 90% remission, and 96% have responded positively with
no significant side effects.
The press release goes on to say
Psoriasis affects 7 million people in the US and 180 million people worldwide,
or about 3% of the population.
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Very Important Risk Factor-
Today, you can invest in shares of Hercules Development, but you
are not buying shares of Astralis yet. Until this merger closes
Hercules Development does not own Astralis or its major asset, the
new vaccine PSORAXINE. The Editors of the OTC Journal have
spoken with the Presidents of both Hercules and Astralis,
and both have told us they are in complete agreement. It is only a matter
of completing the paperwork, which will require approximately 30 days.
This adds an additional risk factor, which only reinforces our suggestion
for starting with 25% to 50% of the dollars you allocate for this stock.
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The
Discovery Of PSORAXINE- A Truly Remarkable Accident |
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In 1992, Dr. José Antonio
O'Daly was working to develop a vaccine for leishmaniasis in Venezuela.
Leishmaniasis is a potentially fatal disease spread by parasites. It is
at epidemic proportions in 21 countries with 650 million people at risk
world wide.
Dr. O'Daly was working with a Peptide
injection he invented, which is a protein derived directly from the parasites,
which carry the disease.
As Dr. O'Daly was making house-to-house
calls to check on his test subjects in his field study, he came across
one patient who, after having received a third dose of the vaccine, experienced
complete remission of the psoriasis on her leg that had plagued her for
12 years.
This amazing day in 1992 could be
considered the birth of PSORAXINE.
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PSORIASIS-
A Widespread Disease of the Skin |
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It is estimated Psoriasis effects
about 3% of the population worldwide, which includes about 7 million
potential patients in the United States and about 180 million people
worldwide.
Symptoms range from a slight irritation
to severe conditions associated with the onset of arthritis. Extreme cases
can result in patients being confined to wheelchairs.
Psoriasis results from an overproduction
of skin by blood cells associated with the immune system. Blood cells become
confused and act as if the skin is damaged, manufacturing new skin cells
at a much faster rate than required by undamaged skin.
Current treatments include locally
applied corticosteroids, methotrexate, coal-tar ointment, or ultraviolet
light. Each has varying degrees of success and some harmful side effects
can occur. Approximately 56 million hours of work are lost each year by
people who suffer from Psoriasis. About $2 billion is spent annually on
treatment.
There are 42 drugs in various stages
of approval process with the FDA. 25 are designed to relieve symptoms.
17 are systemic, but none is generating results even close to Psoraxine.
Currently, there is no cure for Psoriasis,
only treatment to relieve the symptoms. Severe symptoms can be triggered
by high stress periods within a patient's life as we described in our September
26th Edition. Lesions can become so painful that sufferers cannot function.
The psychological damage associated with appearance is also crippling.
Alongside are pictures of several different types of Psoriasis, which speak
for themselves.
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Eight
Years of Study on Three Thousand Patients |
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Dr. O'Daly financed an eight-year
study on 2,770 patients out of his own pocket. The studies followed strict
FDA guidelines going through all three phases. It is now approved by the
Venezuelan version of the FDA, and US clinical trials will begin soon.
In the world of pharmaceutical efficacy,
the results have been startling. Of the 2,770 people in the study, results
were as follows:
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638 had 100% clinical remission.
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1,000 patients had 70-99% remission.
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2,660 had some time of positive response,
anywhere from 10% to 90% remission.
The table depicted alongside shows
the results of the study group using PASI (Psoriasis Area and Severity
Index), commonly used by dermatologists to measure the extent of the disease.
Note that 74% of treated patients
experienced over 70% reduction in symptoms, which falls well within FDA
efficacy guidelines for the future. Only 4% of patients in the sample experienced
less than 10% reduction in severity. These are considered exceptional results
for a new drug.
Of the 2,770 patients in the study,
1,200 experienced no side effects, 1,000 experienced minor pain at the
inoculation site, and about 1,000 had other types of minor discomfort.
There were no detectable side effects aside from discomfort at the site
of the injection.
Dr. O'Daly and Mike Ajnsztajn, the
President of Astralis, believe the vaccine causes a cellular response,
which "wakes up" the affected skin cells to their errant behavior.
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One
Picture Tells A Thousand Words- Look At Pictures of the Cases |
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Note: each picture contains information
about age, disease history, previous treatment history, triggers, PASI
values, treatment, and results. Here are several others for your review,
and we have access to hundreds more of these:
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Market
Size |
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According to the table, 1.6 million
patients will be treated for Psoriasis in the US in 2001. This would translate
into 12.8 million dosages of Psoraxine, if it were available now.
The company estimates the course of 8 doses will cost approximately $1600
or $200 per dose. This would equate to nearly $2.5 billion in sales
for US patients being treated for Psoriasis today.
The table suggests the worldwide
market for Psoraxine could be 32 million dosages by 2006. At $200
per dosage the numbers and profits go off the charts. If this product is
eventually deployed on a worldwide basis, the numbers are staggering, and
the market value of the vaccine far exceeds $1 billion.
Astralis has filed for patent
protection in the US. In the next 12 months, Astralis will be filing
many International patents. During the US Patent process, their technology
is protected by International law.
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Market
Value and Commercial Introduction |
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To date, Psoraxine has only
been approved for commercial use in Venezuela. To market the product in
the US an FDA Approval is required. Astralis estimates this process
will take five to six years and cost approximately $30 million.
Not surprisingly, the FDA will require
an entirely new study following FDA guidelines. As a result of the Venezuelan
data, the FDA has indicated a willingness to give the company 1B status
upon filing of its NDA (New Drug Application). 1B will allow the company
to test the vaccine on 20 to 80 humans to determine effect and toxicity.
This will shorten the process by about 2 years.
However, the market will value
this revolutionary new drug many years before it is commercially available
in the United States. The value will be determined by partnerships and
alliances with major pharmaceutical companies.
"Competition to license pharmaceutical
compounds is becoming fierce. Drug companies used to rely solely on their
own discoveries to deliver the next miracle cure. Nowadays, they are increasingly
likely to license compounds discovered by others."
-McKinsey & Co. Copyright Year
2000
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Because this vaccine is already fully
developed with eight years of testing data, we are expecting arrangements
with several major pharmaceutical household names. In most cases, large
drug companies are investing in technology theories that could take years
to develop. This case is unique as the drug is already developed, and it
is being used everyday and working.
If every patient that seeks treatment
for Psoriasis in the United States were to receive this vaccine, it would
generate about $2.5 billion in sales. Only 22% of people with Psoriasis
in the US actually seek treatment as therapies are expensive and relatively
ineffective.
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Conclusion |
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Despite rumors to the contrary, speculation
is alive and well and living in the United States today. Speculation is
what it's all about. If you're not afraid to take a risk, this investment
opportunity is for you.
This is a dream opportunity for investors.
How often do you get the chance to invest in technology that has the potential
to go from $0 in revenues to tens of billions in several short years?
How much will pharmaceutical companies
be willing to pay to be involved with this revolutionary new break through?
More importantly, how much of this stock will you still own in 5 or 6 years
when Psoraxine is commercially available worldwide and generating
$3 billion in high margin sales? Where will the market value this company?
Of course this is all future speculation,
which is why this opportunity is attractive. Those willing to take the
risk at these levels, will enjoy the rewards if Psoraxine is commercially
successful. An eight-year study on 3,000 patients reduces the risk significantly.
We believe that if and when the pharmaceutical
industry accepts and recognizes Psoraxine, it will view its worth
at $1 billion minimum. This could take 2 to 3 years, but it would put the
stock at about $26.50 per share based on the current number
of shares issued and outstanding. How much risk capital do you have available
for a potential 7 bagger? The choice is yours.
For More Information
Contact:
The Investor Relations Group
1-800-689-2966
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Here is the complete text of the
news release for your review:
Friday September 28, 9:33 am Eastern
Time
Press Release
SOURCE: Hercules Development Group
Announces Execution of Definitive
Agreement to Acquire Biotech Company
New drug PSORAXINE Achieves Clinical
Remission of the Skin Condition Psoriasis in Trials
FLORHAM PARK, N.J.--(BUSINESS WIRE)--Sept.
28, 2001--Hercules Development Group (OTC:HDVG - news) announced today
that it has executed a definitive agreement to acquire Astralis LLC, a
New Jersey-based start-up biotech company.
The first drug to be developed by
Astralis, PSORAXINE, has brought about clinical remission of the skin condition
known as Psoriasis during clinical trials conducted in Venezuela. The Company
has conducted clinical trials in Venezuela and treated 3,000 patients with
Psoraxine to-date. Of these, 638 experienced complete remission and 1,000
have experienced between 70% and 90% remission.
The primary end point was the reduction
of the Psoriasis Area and Severity Index (PASI) before and after treatment
with Psoraxine. Overall, 96% of patients have responded positively to Psoraxine,
with few adverse effects, although these results were not independently
verified.
``The market potential for Psoraxine
is staggering,'' said Mike Ajnsztajn, CEO of Astralis. ``Psoriasis affects
7 million people in the United States alone, and conservative estimates
indicate that up to 3% of the world population also suffer from this condition--as
many as 180 million people.''
Psoriasis results due to an overproduction
of skin by blood cells associated with the immune system. These blood cells
become confused and act as though the skin was damaged, manufacturing skin
cells at a much faster rate than is required by undamaged skin. This overproduction
of skin can cause everything from itchy rash-like patches to painful pustules
and massive inflammation.
Most current treatments are sub-optimal
and some systematic treatments can cause serious side effects. In fact,
of the 7 million people living with Psoriasis in the US today, only 1.6
million choose treatment.
``We are impressed with Psoraxine's
clinical results so far,'' said Dr. Jose Antonio O'Daly, MD, PhD, Chairman
and President of Research and Development for Astralis. Dr. O'Daly, a graduate
of Johns Hopkins University, added: ``Discussions to date with the FDA
have been positive and encouraging. Although Astralis has not yet filed
an Investigation of New Drug Application (IND) with the US FDA, the FDA
had recommendations for submitting our IND for a PHASE 1-B, which should
be filed shortly. The recommendations took into account the existing Venezuelan
data, which we hope will significantly reduce the number of first-stage
studies required and ultimately speed up the approval process.''
In addition, patent protection has
been applied for composition of matter, method of use, DNA sequence of
peptides, and the new gene sequence that fuels Psoraxine. Although there
can be no assurance that a patent will be granted, Astralis hopes to have
the patent granted in the first quarter of 2002. In the next 12 months,
Astralis expects to file patents in overseas patent offices. During this
period, this discovery is protected in other countries as per international
patent law.
The agreement provides for the issuance
of 28,000,000 shares of newly issued Hercules shares in exchange for 100%
of the outstanding shares of Astralis. Simultaneous with the issuance of
the Hercules shares to the Astralis shareholders, existing shareholders
of Hercules will cancel into treasury a total of 23,500,000 shares of Hercules.
Hercules will also undertake a private placement of equity in the amount
of $3,200,000 in conjunction with the acquisition.
The closing of the agreement is contingent
upon the completion of the private placement.
Based on the completion of the definitive
agreement with Astralis, Hercules also announced termination of discussions
to acquire the Bauer Partnership.
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Contact:
Hercules
Development Group
by
Richard
Genovese
The Investor
Relations Group
800/689-2966 |
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