SOURCE: Generex Biotechnology

March 20, 2007 10:05 ET

Torc Investments and Research Reiterates "Buy" Rating on Generex Biotechnology and $3.00-$3.50 12-Month Price Target

TORONTO -- (MARKET WIRE) -- March 20, 2007 -- Generex Biotechnology Corporation (NASDAQ: GNBT), the leader in drug delivery for metabolic diseases through the inner lining of the mouth, announced today that Torc Investments and Research LLC, a NASD registered broker-dealer, reiterated its Buy rating and a 12-month price target of $3-$3.50.

The updated Report, issued by Director of Research Amanda McNamara, noted that, "The company continues to create brand awareness for its main product-line centered on management of diabetes-a growing concern as it is estimated that 350 million people worldwide will be affected by the disease by 2025. While GNBT's flagship Generex Oral-lyn™ has recently been launched in Ecuador, we patiently await the commencement of late-stage trials in Canada, and potentially other countries, which should start in Fall 2007. In the meantime, Generex continues to establish relationships with worldwide Diabetes Associations in order to gain support for its products. These associations are expected to significantly help in educating the consumers as Generex Oral-lyn™ becomes available in more markets around the globe."

The Report added, "Additionally, the past quarter has been especially busy for GNBT's Antigen Express subsidiary as it moved its breast cancer vaccine into Phase II trials and an avian flu vaccine into Phase I. The subsidiary also made plans to initiate a Phase I study of a prostate cancer vaccine later this spring. Overall, GNBT has a solid balance sheet with nearly $49 million of cash and short-term investments which compares favorably with its recent cash burn rate of approximately $16 million. While this burn rate may go up as more clinical programs are initiated, we still believe the company has sufficient capital for the immediate future."

The Report concluded that, "While the company has several products in its pipeline, we continue to value the stock on its leading candidate, Generex Oral-lyn™, as we compare and discount GNBT's market capitalization to MannKind Corp. since both companies target the alternative insulin delivery market and both are reliant on one main product to significantly drive sales. We are maintaining our price target of $3.00 to $3.50 over the next 12 months, equating the market capitalization of GNBT to $330 million-$385 million. This range is still only approximately one-third of MannKind's current market capitalization of $1.1 billion but is not unreasonable due to the comparison of targeted markets."

"Since Torc initiated coverage of Generex approximately six months ago, the Company has made significant progress in developing its platform technologies," said Anna Gluskin, President and Chief Executive Officer of Generex Biotechnology. "We believe that there exists great potential for Oral-lyn and look forward to initiating a pivotal trial which will further validate our unique ability to orally deliver insulin."

The entire report is available at www.torcinvestments.com.

About Torc Investments and Research LLC

Torc Investments & Research LLC is a NASD registered broker-dealer offers a multitude of specialized services. The firm acts as an introducing broker to Merrill Lynch for hedge funds, institutional and high net worth retail accounts. It offers execution services through TradeSpeed technology which provides clients with direct market access with an emphasis on celerity. The company's research department provides in-depth, fundamental research analysis for equities with its core focus on the micro-cap and small-cap sector. Industry experience, coupled with superb technology and customer service, allow TORC Investments & Research to offer their clients advantageous and valuable resources in the financial sector.

About Generex

Generex is engaged in the research and development of drug delivery systems and technologies. Generex has developed a proprietary platform technology for the delivery of drugs into the human body through the oral cavity (with no deposit in the lungs). The Company's proprietary liquid formulations allow drugs typically administered by injection to be absorbed into the body by the lining of the inner mouth using the Company's proprietary RapidMist™ device. The Company's flagship product, oral insulin (Generex Oral-lyn™), which is available for sale in Ecuador for the treatment of patients with Type-1 and Type-2 diabetes, is in various stages of clinical trials around the world. For more information, visit the Generex website at www.generex.com.

Safe Harbor Statement: This release and oral statements made from time to time by Generex representatives concerning the same subject matter may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by introductory words such as "expects," "plans," "intends," "believes," "will," "estimates," "forecasts," "projects" or words of similar meaning, and by the fact that they do not relate strictly to historical or current facts. Forward-looking statements frequently are used in discussing potential product applications, potential collaborations, product development activities, clinical studies, regulatory submissions and approvals, and similar operating matters. Many factors may cause actual results to differ from forward-looking statements, including inaccurate assumptions and a broad variety of risks and uncertainties, some of which are known and others of which are not. Known risks and uncertainties include those identified from time to time in the reports filed by Generex with the Securities and Exchange Commission, which should be considered together with any forward-looking statement. No forward-looking statement is a guarantee of future results or events, and one should avoid placing undue reliance on such statements. Generex cannot be sure when or if it will be permitted by regulatory agencies to undertake additional clinical trials or to commence any particular phase of clinical trials. Because of this, statements regarding the expected timing of clinical trials cannot be regarded as actual predictions of when Generex will obtain regulatory approval for any "phase" of clinical trials. Generex claims the protection of the safe harbor for forward-looking statements that is contained in the Private Securities Litigation Reform Act. Torc Investments and Research has received a fee of twenty-five thousand dollars for one year of research coverage of the Company.

Contact Information

  • For further information, contact:
    Amanda McNamara
    Director of Research for Torc Investments
    (212) 897-7317