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Trading Alert-
Calypte Biomed (OTC BB: CALY) |
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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.
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Market
Potential |
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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:
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The product gives
extremely accurate results. In several studies, there were zero false positives
and zero false negatives reported.
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Detects the presence
of the virus in children under 15 months of age. Serum testing is not as
accurate in this age group.
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There is less
risk to health care providers and lab personnel as no needle as required.
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Patients prefer
urine testing as it is less invasive and no needles are involved.
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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.
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Trading
Alert Details |
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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.
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Buy up to
$.17- you will own this technology with an $8 million valuation.
They nearly achieved this much in sales last year.
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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.
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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 www.calypte.com.
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.
--------------------------------------------------------------------------------
Contact:
Sitrick
And Company
Joe Bunning,
310/788-2850
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