Bioprogress General Discussion

I am delighted that the machine installation is at Inyx. This means that all the four TTP's can have access to the machine on an independently verified site. The news release today has combined the twin strategies, developing the respiratory molecule deliveries in the direct market and advertising that we have a new partner who is experienced and capable of running product delivery in a multitude of formats. I can now voice my concerns over what I perceived the only risk to BPRG. That of spreading ourselves too thinly on the ground.

It is now abundantly clear how RT has foreseen the potential of us being overstretched and negotiated the optimum positioning of our strategic production. The cash flow from increased and cross border product releases seems to be gathering pace and the next stage development of the allied distributior chain appears to be well underway. Products now growing to produce a very sizeable marketing operation, and all acheived with minimal cash spent.

The TABWRAP machine has already run some stability trials and this will continue until main stream product launches are announced. In previous RNS's he has alluded to product at the beginning of h2 in 2007 and with BPRG's ability to speed up the general timescales I think they willl pull this forward to the end of H1.

The capacity of one machine in money making circles is then going to be debated to death. My view on this is that the higher margin products will be prioritised. The so called blockbuster drugs need to be produced in formats that permit more defined product delivery where the molecules themselves have a high price per dose, increasing the efficiency of the molecule delivery can reduce the amount of active consumed. In some cases the dosage of lets say a $25 per dose drug can be halved if it can be delivered differently. It is these products where we can actually make a spectacular profit and the pharmas know this. The figures of 5p per tablet would be for volume type deliveries. The market that is best suited for TABWRAP is actually more targetted and lower volume. It would be possible for 1 single TABWRAP machine to supply enough finished product for the world demand of several of the worlds blockbuster drugs that are coming off patent. The enteric option I am told will produce this on TABWRAP deliveries and have a smaller selection of side effects due to lower dosages being required and down stream absorption. After all if the pharmas do not proceed with haste on these projects they will lose billions when their drugs come off patent.

I think that we will see an announcement in the next 10 business days regarding the FMC situation and what they want to do with the additional opportunities they have uncovered in the last two years. I met with the boss of one of the worlds largest pharmas last week and he was very aware of the BPRG technology but was not drawn on anything else. It is obvious that the global pharmas have tried and failed as yet to get what we have running for themselves. IN a competitive marketplace such as the global pharma marketplace there are huge threats to the massive income streams that these companies currently enjoy. We have our own drugs on the shelves and more joing on a monthly basis, our cash requirements due to these profits willl not lead to massive dilution.

I would like to thank RT for his vision in sorting out my company and to wish him and all the rest of our diligent and hardworking staff a terrific Christmas. No doubt they have earned a Christmas rest, as 2007 progresses we will need them all to be on top of their game to deliver the goods.

Merry CHristmas and a Very Prosperous New Year to all !

Caveat Emptor