Trading Alert - Calypte Biomed

May 31, 2002
Volume V, Issue 40
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To OTC Journal Members:

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Trading Alert- Calypte Biomed (OTC BB: CALY)

Today's Trading Alert idea is a high risk situation at a very low price. However, this company has a revolutionary new test for AIDS which has the potential to change the way millions of people world wide are tested for the HIV Virus.

This company has both the patents and FDA Approval for the only test which uses urine as opposed to blood to test for the HIV virus. The potential market for this product is staggering.

Calypte Biomed has spent $88 million over the last decade going through the process of obtaining FDA and worldwide approvals for its urine test for HIV. The technology is also patented in the US and Internationally. Final approval on their manufacturing facility came last year. The company had just started sales and marketing when they simply ran out of money.

On April 17 the company announced it was winding down its business and expected for file for bankruptcy. The stock abruptly fell from $.15 to $.02.

On May 13th the company announced it would not be closing its doors. Instead, Mr. Anthony Cataldo would replace then Chairman David Collins, and Mr. Cataldo's commited to immediately raise an additional $1.5 million in new funding. As you can see from the chart, the market responded with a rebound in the stock above the $.20 range on huge volume.

In a refreshing move for shareholders, Mr. Cataldo over performed in short order. Last Friday, May 24, the company announced their new Chairman had been successful in raising an additional $2.7 million in additional financing, 80% more than the original commitment. Click here for the press release.

New management and a resupplied bank account has given Calypte Biomed a new lease on life. With approximately 60 million shares issued and outstanding, the closing price of $.138 has the company valued at about $8 million. With $2.7 million in new financing, the market is only allowing a value of about $5 million for the technology which cost $88 million and took many years to develop.

Market Potential

This map depicts the current depth of the worldwide AIDS epidemic. Each red figure represents 50,000 people infected with the AIDS virus. North America has few cases with only 750,000 infected. The Sub Saharan African continent and parts of the Pacific Rim are in deep trouble, with 14 million and 5.4 million cases respectively.

The spread of AIDS can only be stopped through education and detection. Before an individual can be prevented from spreading AIDS, health care organizations have to know that person has the virus. Therefore, the potential market for this product is enormous.

The advantages of urine testing over traditional blood testing are as follows:

  • The product gives extremely accurate results. In several studies, there were zero false positives and zero false negatives reported.
  • Detects the presence of the virus in children under 15 months of age. Serum testing is not as accurate in this age group.
  • There is less risk to health care providers and lab personnel as no needle as required.
  • Patients prefer urine testing as it is less invasive and no needles are involved.
  • This method is less costly- the equipment required to get the sample costs less, storage costs less because a sample can be stored a room temperature for 55 days before testing, and the sample is collected in a simple, non sterile container.
Based on the technologies available today for testing for the HIV Virus, the world should turn to the testing of urine as world health organizations begin to attack this epidemic which is killing millions of people every year.
Trading Alert Details

New Chairman Tony Cataldo has wasted no time getting the process started to penetrate the market for this product by beefing up the management team. Although the board already includes the former President of the Pharmaceutical Manufacturers Association of America, former Deputy Commissioner of the FDA, and the President of the US division of the largest Japanese pharmaceutical maker, another high profile board member was added today, and the news came out just after the market closed.

Hollywood veteran Martin Landau has agreed to serve on Calypte's board, effective today. He is well known for his philanthropic activities, and is expected to open many doors for the company on a world wide basis.

Sales were just beginning to materialize in 2001 as the company was able to achieve $6.8 million, up from $3.2 million in 2000. As you can see from the map, 40 million people worldwide are now estimated to have contracted the AIDS virus.

It is simply a question of marketing skills, time, and money before International Health Organizations dedicated to stopping the spread of the AIDS epidemic seek out Calypte's testing technology.

It has already been adopted by North American life insurance giants Met Life and American General, just to name two of many. This stock is a great speculation at $.14.

  • Buy up to $.17- you will own this technology with an $8 million valuation. They nearly achieved this much in sales last year.
  • Set your Stop Loss at $.10 to give you some room for a short term pullback or what ever your risk tolerance is.
  • Look for a short term move to $.20  on the heels of today's announcement after the close. Because this is a low priced stock, you can pick up thousands of shares with a minimum amount of capital. The stock rebounded to $.20 after announcing they weren't closing their doors. It should be able to get back there. A move to $.20 would place the stock 45% above today's closing price.
  • Unlike most of our Trading Alerts, think of a two week time frame to allow the company to announce further positive developments. They have momentum right now.

The OTC Journal intends to publish follow-up editions on this company. This stock has the potential to be a huge winner. To learn about Calypte Biomed, visit the company's web site at

This newsletter is our opinion only, and not a solicitation to buy this stock. Make up your own mind. If you are looking for a short term trade limit your loss if the stock goes against you. As always, we remind you before making any investment decisions please review the section on our home page on Trading Alerts. Read our section on Successful Microcap Investing, paying particular attention to the Trading Strategies Section. The track record on our previous alerts can be obtained by clicking here.

Here is the complete text of today's news release for your review:
Friday May 31, 5:50 pm Eastern Time
Press Release
SOURCE: Calypte Biomedical

Calypte Biomedical Announces the Appointment of Martin Landau to Its Board of Directors
To Play Active Role in Promoting Increased Public Awareness of Proprietary HIV-1 Urine-Screening Test

ALAMEDA, Calif.--(BW HealthWire)--May 31, 2002-- Calypte Biomedical Corporation (OTCBB:CALY - News), the developer and marketer of the only two FDA-approved HIV-1 antibody tests that can be used on urine samples, today announced the appointment of Academy-Award winner Martin Landau to the Company's Board of Directors. 

"Our number one objective is to increase the public's awareness of Calypte's proprietary HIV-1 urine screening tests, and we expect Martin Landau to play an active role in this process," said Anthony Cataldo, Executive Chairman at Calypte. 

"Martin is not only respected among his peers as one of the finest actors of his generation, but he is also known for his involvement in humanitarian causes and has been at the forefront in the fight against AIDS. His willingness to accept the invitation to join our board adds tremendous credibility and stature to our organization," Mr. Cataldo added. 

Martin Landau received an Academy Award for his 1994 portrayal of Bela Lugosi in Tim Burton's "Ed Wood" and received two consecutive Oscar nominations for Francis Ford Coppola's "Tucker: The Man and His Dream" and for Woody Allen's "Crimes and Misdemeanors." Mr. Landau has also appeared in many television productions, most notably the adventure/espionage series "Mission: Impossible." 

"I believe in Calypte's mission to provide reliable, safe, and inexpensive alternative products for the detection of HIV throughout the world and intend to play an active role in spreading the word about this company's humanitarian products," Landau stated. 

About Calypte Biomedical: 

Calypte Biomedical Corporation headquartered in Alameda, California, is a public healthcare company dedicated to the development and commercialization of urine-based diagnostic products and services for Human Immunodeficiency Virus Type 1 (HIV-1), sexually transmitted diseases and other infectious diseases. Calypte's tests include the screening EIA and supplemental Western Blot tests, the only two FDA-approved HIV-1 antibody tests that can be used on urine samples. When compared with existing blood-based tests, our testing algorithms are non-invasive, easier to use, less expensive and have significantly less risk than blood-based testing, and they have 99.7% sensitivity in subjects previously identified as HIV-1 infected and 100% specificity in subjects at low risk when combined with the urine-based Western Blot supplemental test. The company believes that accurate, non-invasive urine-based testing methods for HIV and other infectious diseases may make important contributions to public health by helping to foster an environment in which testing may be done safely, economically, and painlessly. Calypte markets its products in countries worldwide through international distributors and strategic partners. 

Statements in this press release that are not historical facts are forward-looking statements within the meaning of the Securities Act of 1933, as amended. Those statements include statements regarding the intent, belief or current expectations of the Company and its management. Such statements reflect management's current views, are based on certain assumptions and involve risks and uncertainties. Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including, but not limited to, our ability to obtain additional financing and access funds from our existing financing arrangements that will allow us to continue our current and future operations and whether demand for our product and testing service in domestic and international markets will continue to expand. The Company undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in the Company's expectations with regard to these forward-looking statements or the occurrence of unanticipated events. Factors that may impact the Company's success are more fully disclosed in the Company's most recent public filings with the U.S. Securities and Exchange Commission ("SEC"), including its annual report on Form 10-K for the year ended December 31, 2001 and its subsequent filings with the SEC. 
     Sitrick And Company
     Joe Bunning, 310/788-2850

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