Large Scale Biology

Updated Oct 26, 2001
 
Years Jan-Sep
2001		 Dec
2000		 Dec
99		 Dec
98		 Dec
97		 97-99 
3-yr Annual
Revenues (Mln US$) 17 23.3 16.1 3.4 2.1
Revenues Growth % -3 45
Net Loss (Mln US$, excl spec. items) -11 -8.2 -9.5 -9.4 -6.6
Special Items -18.4
R&D (Mln US$) 16 16.4 9.5 7.0 5.9
Cash Flow / Debt
Net Loss per Share
Market Cap.:                                                    84        millions US$  (Oct 24, 2001)
Cash & Short Term Investment:                     58          millions US$  (Sep 30, 2001)
Total Assets:                                                     87
Long Term Debt:                                              0.3
Total Liabilities:                                                6
Shareholders Equity:                                        81

Profile

- found in 1987 and went public in 20000
- an industry leader which intergates both proteomics (the study of proteins) and functional genomics technology to develop pharmaceutical and agricultural products

How does it make money?

Currently it works with individual companies to build customized proteomics databases for solving particular problems.  Its revenues are come from collaboration with other agricultural and drug companies.  The fund is used to support its further expansion.  Over 80% of the revenues is come from contract with Dow Chemical.
For the long term, the real significant return will be found in future drug discovery by applying its technology in proteomics.  Therefore, the Company could only have actual income at least 10 years from now.

Is it in a great potential market which could lead to a sizable increase in sales for at least several years?  Does it have a strong demand?  How big is the market?

By using its robotic system to understand how the genes and their proteins work,  it will be more effective in identifying drug targets, developing new protein drugs and evaluating drug effectiveness and toxicity.
Its technology of "molecular farming" is also an efficient way to manufacture pharmaceutical proteins, vaccines and other useful proteins.
In its collaboration with other larger companies, it helps to understand what the demand is.
 
Partners Program
Dow  use of GENEWARE technology in agriculture and industrial chemicals.
have identified some commercial significant genes.
revenues of US$ 11.2 million from Dow is expected in 2000
Novartis examined the kidney damage caused by the immunosuppressant drug Cyclosporine A (widely used to prevent rejection of transplanted kidneys and hearts).
by using PROGEx System, a protein playing a critical role in the damage was identified.

LSBC also has collaboration with Glaxo Wellcome, Procter & Gamble, Genentech and some government agencies.
 

What makes the company different from its competitors?  How does the company sustain its competitive advantages?

The Company has developed 2 proprietary technology called ProGEx and GENEWARE.

1) ProGEx is a system to identify, quantify and determine the function of protein in cell and tissues.  It is an automated system which shows the protein composition, or proteome, of cells and tissues.  It identify and quantify changes in proteins that are caused by diseases or by the use of particular drugs.
    By using ProGEx system, the company is developing products as follows:
- Human Protein Index (HPI) - database of detailed protein composition of all normal human tissues and cells.  It is expected to be completed by the end of 2001.
- Molecular Anatomy and Pathology (MAP) - database that describes the changes in protein composition associated with disease.
- Molecular Effects of Drugs (MED) - database that describes changes in protein composition associated with medical treatments.

2) GENEWARE is a system to determine gene functions and manufacture proteins. It uses viruses to transfer genetic information into living plant cells (usually tobacco) thereby causing those host cells to make new protein products that they would not normally make.  The system is used to rapidly insert genes into host organisms for gene discovery, gene function analysis and protein production.
GENEWARE is being used to:
- identify gene sequences
- determine gene functions and
- manufactur therapentic proteins, vaccines and other commercially useful proteins.
In Nov 2000, the Company has began clinical evaluation of its personalized vaccines against B-cell non-Hodgkin's lymphoma (NHL), a type of immune system cancer showing increased incidence and mortality.

Is it the market leader? Who are its competitors?

For applying both proteomics and genomics for medical and agricultural uses, the direct competition is mainly from a UK company called Oxford GlycoSciences.
In production of pharmaceutical proteins in plants, there are some competitors:
CropTech
Prodigene
Monsanto's IPT division
In the market for protein study and development, competitors are:
Oxford GlycoScience
Proteome
Myraid
Celera
Ciphergen
MDS Protana
Proteome Systems
MDS Proteomics

Is the market price too high?

Is it a monopoly-type business?

Does the management have a determination to continue to develop products that will further increase total sales when the growth potentials of currently attractive product lines have largely been exploited?

How effective are the company's research and development efforts in relation to its size?

Does the company have an above-average sales organization?

Does the company have worthwhile profit margin?

What is the company doing to maintain or improve profit margin?

Does the company have outstanding labor and personnel relations?

Does the company have outstanding executive relations?

Does the company have depth to its management?

How good are the company's cost analysis and accounting controls?

Does the company have a short-range or long-range outlook in regard to profits?

Will the growth of the company require sufficient equity financing so that the larger number of shares then outstanding will dilute existing shares?

Does the management talk freely when things are going well, but "clam up" when troubles and disappointments occur?

Does the company have a management of unquestionable integrity?