Common Sense for the Biochemist

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Our long term strategy is to focus on protein-based pharmaceuticals where we believe the benefits of the Stratosome™ Biologics System and the Affinity Capture System give us a market advantage through flexibility and scalability of production, by enabling the production of proteins that are problematic using other transgenic systems, through lower capital costs for protein production and purification facilities and lower production costs. Initially we have chosen to focus on products where clinical efficacy has already been demonstrated, such as insulin, or where early clinical data is encouraging, such as Apo AI. For such product candidates, the key technical challenges are primarily those associated with the deployment of our technology towards the production of the target protein. As the first products move through the development pipeline, we expect to develop additional product candidates. As a complement to this long term strategy, we are developing non-pharmaceutical products, which have the benefits of lower regulatory hurdles, development costs and capital requirements, allowing us to generate revenues in the short to medium term with relatively low risk. In addition, commercialization of non-pharmaceutical products will allow us to continue developing the organizational infrastructure required to develop and commercialize protein-based pharmaceuticals.

- From Sembiosys's website News Items: General: 12/15/05 - Sembiosys private placement increased by 50% 12/06/05 - Sembiosys places $10.3 million in private deal 11/29/05 - Sembiosys plant derived insulin bio-equivalent to human insulin 11/22/05 - Sembiosys uses debt financing for capital expansion 5/26/05 - Press Release - SEMBIOSYS RECEIVES LICENSE PAYMENT FROM LONZA
Financial: 7/28/05 - Press Release - SEMBIOSYS ANNOUCES SECOND QUARTER RESULTS