Dow Jones 12127.88 +10.97 5:07 am PDT, October 25, 2006 NASDAQ 2344.84 +0.00 For info, visit access.smallcapnetwork.com S & P 500 1377.38 +0.00 Change your subscription status here Russell 2000 762.43 +0.00 VOLUME 06: ISSUE 85 Another Cancer Test Evolution You know how athletes sometimes talk about taking their game to the 'next level'? It's just a succinct way of describing the change from average performance to superior performance (or even from superior to improbable performance). Although you don't hear sports analogies too often in the investing world, we think the phrase 'next level' is an appropriate description for one of the projects of a company we've been following for a while. BioCurex (OTCBB: BOCX), by way of an announcement a few moments ago, looks like it may have taken a cancer detection test to a 'next level' of its own. Investors, potential or otherwise, should obviously take note, as the most recent evolution of the company's RECAF test is still in its infancy.  And just so you know where all this is going, we'll begin with the two-point grand finale. One, the RECAF test results so far make it appear to be a far better (i.e. more accurate) option than other (i.e. current) cancer detection tests. Two, the potential dollars up for grabs in the market is just enormous. Take a look, and see what you think.   Proof of the Pudding  If you're not familiar with BioCurex's RECAF cancer detection test, it may be worth reviewing two key points. In simplest terms, it seems to work better than current alternatives, and has repeatedly found cancer in its early stages...when cancer is much easier to beat. Not only are current cancer tests less accurate, they also tend to only spot later stages of cancer, when treatment is much less effective. Just look at the test results we've covered in just the last few months.  April 11th: RECAF detects early stages of breast cancer with high specificity. Patients afflicted with either early Stage 1 or Stage 2 breast cancer were 'marked' by the RECAF test with a sensitivity exceeding 90 percent, and 100 percent specificity (or no false positives). Mammography has a sensitivity of 65-75 percent, and has a specificity of 90 percent, which translates into 10 percent false positives.  July 19th: RECAF twice as effective as current prostate cancer test (or PSA). The standard PSA test showed a sensitivity of 48% with 60% specificity. The specificity could be increased to 70%, but at the expense of doubling the cost. By comparison, using the company's RECAF test on the same cancer and benign samples, the sensitivity was 90% with a specificity of 84%.  October 17th: RECAF tests accurately in detection of gastric cancer; no other biomarker specifically detects gastric cancer. Third party (non-BioCurex) research reported a 73% sensitivity with 97% specificity using Histo-RECAF for tissue examination in gastric (stomach) cancer detection tests.  Get the first point now? The RECAF test is superior at detecting at least three kinds of cancer, and the company expects to see similar detection results as more and more types of cancer are tested. Why wouldn't the medical community embrace a better tool?    The 'News' As fully described in the press release below, BioCurex announced today they have successfully performed RECAF tests using a light-based detection format rather than a radiation-based format.  The radioactive version of the test uses a radio-immunoassay to find radioisotopes serving as a specific biomarker, highlighting the presence of any cancer. Since tiny amounts of radioactivity can be measured with the appropriate equipment, the result is an assay that can detect trace amounts of an individual substance like RECAF in a blood sample. The test results cited in the previous section were achieved using radio-immunoassays.  The light-based test can yield similar results, but through a technology called chemoluminescence. That's just the fancy word for a biological 'tag' emitting light when it reacts with certain chemicals. The presence of cancer would create a certain light signature that wouldn't be seen otherwise.  How well does it work? It works as consistently as the traditional version of the test. On 68 prostate cancers (Stages I and II) the new format detected 71% of cancers with 87% specificity. Only 27% of these samples exhibited a PSA higher than 4 ng/ml (the value above which there is the suspicion of cancer). While the common the PSA test would not have spotted the cancer, the RECAF test was able to detect these early cancers. On 28 miscellaneous cancers, which included more advanced stages, the sensitivity was 86% with 95% specificity.  So what? Keep reading.   Similar Technology in Use by Other Companies If the old detection test format worked well enough, then what does it matter?  We'd be the first to admit not being sure whether or not this was even 'news'. If the results were the same, what would it matter? However, a re-read of the press release, and some research above and beyond that, uncovered that using light-based instruments to find particular 'signatures' is a direction that a big chunk of the industry seemed to be moving in.  Take Applera Corp-Celera Genomics Group (NYSE:CRA) for instance. The company is utilizing the idea of spectrometry, or light-based instruments, to identify unusual levels of proteins, relative to normal levels, in human cells. The company believes spotting the difference in protein levels (peptides, actually) will be an affective means of distinguishing between normal and potentially-diseased cells...effectively serving as a detection test. The high throughput equipment used by Applera is the same type of tool that BioCurex's new RECAF test will be utilizing. This 'proteomics' effort at Celera is currently focused on pancreatic cancer, lung cancer, colon cancer, and breast cancer. Notice that the only target disease in common with BioCurex's research (so far) is breast cancer.  Digene Corp. (NASDAQ:DIGE) is another biotech company using light-based, high throughput equipment like BioCurex will now be abe to use. But, Digene is waging their war on diseases such as human papillomavirus (HPV) - the primary cause of cervical cancer - with a slightly different approach. Their detection process comes in two stages. The first stage is the introduction of so-called 'probes' into the potentially infected patient. These probes are designed to only attach to the DNA of a specific virus or bacteria. When test results are analyzed, the presence or absence of the target DNA is determined by a particular chemiluminescent reaction. Digene's methodology looks promising, but cancer is not their primary target.  And how does the use of light-based immunoassays affect BioCurex? Let's just say it's huge. One of the company's key partners, Abbott Laboratories (NYSE:ABT), won't use radio-immunoassays. It's not like they absolutely have to in order to fulfill their role to BioCurex; Abbott has semi-exclusive rights to market RECAF technology, which doesn't necessarily require them to provide the equipment that can actually analyze said tests. BUT, even a casual observer would have to wonder about the conflicting message there.  Abbott is no slouch - they control about 1/3 of the diagnostic equipment market. If they wouldn't use equipment despite that fact that one of their licensors required its use, then there was clearly a limitation in place. Odds were/are that other major diagnostic equipments outfits were also avoiding the use of radio-immunoassays for the same reasons. The result is a very limited - and perhaps even shrinking - functionality for the RECAF test.  Well, there is indeed more to the story. As it turns out, radioactive isotopes are a logistical pain....no surprises there. As you may suspect, radioactive materials, even as minimally radioactive as these tests require, are heavily regulated by the government - transporting them includes a lot of (too much) regulatory red tape. Plus, they have a limited life span. If the materials sit on a shelf too long, they become useless, and therefore, a waste of money.  Colorimetric (light-based) materials, on the other hand, offer advantages such as a longer shelf life, greater convenience and easier shipment.  It's no wonder radio-immunoassays are considerably less desirable than the chemoluminescent alternatives.  The upside should be clear, but if it's not, we'll spell it out.....the more labs that are able to use the colorimetric RECAF test, the bigger the potential market for BioCurex is. The new test format is directly compatible with a larger number of instruments used in most clinical laboratories. Many research laboratories also have chemoluminescence readers, so BioCurex can ship demonstration kits for further validation of their previous work - an important concept we discussed just a few days ago.  The bottom line is, the announcement brings BioCurex one step closer to the commercialization of RECAF cancer test.    The Opportunity Rather than dazzle you with some accounting forecasts that, to be honest, don't quite do the opportunity justice, we'd rather just hit some key points - to provide some real perspective. The PSA test market alone each year is worth half of a billion dollars (yes, with a 'b'), but prostate cancer only accounts for about 1/3 of all cancer among men. BioCurex is obviously effective at spotting those cases early, however...  As the result of ongoing research, it's becoming clear RECAF may be useful in detecting many types of cancer other than just prostate cancer, thus widening the playing field. More than that...  There are now more than 11 million new cases of cancer diagnosed globally each year. By 2020, it's expected there will be 15 million new cases per year, with the number to keep growing after that. Plus...  While not all cancer cases are actually diagnosed with a test, many cancer tests are taken with a negative (non-cancerous) diagnosis. Point being, the number of potential cancer test kits needed each year could also number in the millions. Figure that...  BioCurex's test kits will be priced - conservatively - anywhere between $10 and $30 (at least for the radio-immunoassay version). Factor in...  Abbott reports about $20 billion in sales each year, which is 1/3 of the diagnostic market. Obviously the RECAF test isn't the only item they sell, but with the market share (and marketing leverage) controlled by Abbott, even BioCurex's thin sliver of Abbott's pie is still a big piece of pie. And don't forget, Abbott's deal is only semi-exclusive; other doors may be opened later. It's difficult to really gauge just what kind of potential dollars this could mean for BioCurex...but it's big. We know it's on the order of millions if the RECAF test validity continues to grow as it currently is, which for BioCurex - and by extension, its investors - would be a gigantic windfall.  For aggressive investors who can see the 'bigger picture', tolerate the risk, and are willing to be patient during the early R&D stages of RECAF, BioCurex is well worth monitoring. The question is simple - if you liked what you know about RECAF so far, do you think the medical community and other investors will too?    Press Release Source: BioCurex, Inc.  BioCurex presents new format for blood test detection of cancer with results superior to PSA  RICHMOND, Canada, October 25, 2006. -- BioCurex Inc. (OTCBB:BOCX) announced today that it has presented its first set of results using a colorimetric version of its RECAFTM blood test for cancer detection at the annual meeting of the International Society for Oncofetal Biology and Medicine in Pasadena, CA. The results exhibited that this colorimetric version of BioCurex's RECAF test detected more than twice the amount of cancers than the most widely used cancer detection test utilized today - the PSA test.  BioCurex previously obtained excellent results with a radio-immunoassay format. An immunoassay takes advantage of the exquisite specificity of an antibody to detect one and only one substance - in our case RECAF - among the hundreds of different molecules in serum. A radio-immunoassay uses a radioisotope as a tag and since minute amounts of radioactivity can be measured with the appropriate equipment, the result is an assay that can detect trace amounts of an individual substance (RECAF) in the serum. Radio-immunoassays have now been successfully used for almost 50 years but the use of radioactivity and their short life-span due to radioactive decay has prompted the search for alternative way to detect the reaction (it should be noted that the amount of radioactivity used is minute, but its use as well as shipment is heavily regulated by government agencies).  Most high throughput automated systems - such as the Abbott ArchitectTM - use chemoluminescence which is based on a tag that emits light when it reacts with certain chemicals. By convention, tests that rely on light to measure the reaction are called "colorimetric assays". They offer advantages such as a longer shelf life, greater convenience and easier shipment.  The results referred herein were obtained with chemoluminescence and they represent a significant step forwards to implementing the RECAF test in the automated instruments supported by clinical laboratories.  On 68 prostate cancers (Stages I and II) the new format detected 71% of cancers with 87% specificity. Only 27% of these samples exhibited a PSA higher than 4 ng/ml (the value above which there is the suspicion of cancer). Therefore the PSA test would not have raised suspicion whereas the RECAF test was able to detect these early cancers.  On 28 miscellaneous cancers, which included more advanced stages, the sensitivity was 86% with 95% specificity.  Dr. Moro stated: "We are very happy with these results since this new format is directly compatible with many high throughput automated instruments used in large clinical laboratories. Many research laboratories also have chemoluminescence readers and therefore BioCurex can now ship demonstration kits to other scientists for further validation of our previous work, something not easy to do with a radioactivity based kit (due to shipping restrictions).  Dr. Moro added: "This breakthrough brings us one step closer to the commercialization of our unique cancer test. We have more work to be done to optimize the assay for improved detection comparable to our radioimmunoassay results. We will need to test more samples before we are finished, and there are also other colorimetric formats that we want to implement as well. However, our active participation and collaboration with others to develop this new testing method is rewarding. We are particularly pleased with the development of this format since the know-how gained can be transmitted to all of our future licensees, and it worked well with early stages of prostate cancer. As a matter of fact, it detected more than twice the cancers that PSA would have detected".  About BioCurex:  BioCurex, Inc. is a biotechnology company that is developing products based on patented/proprietary technology in the areas of cancer diagnosis, imaging and therapy. The technology identifies a cancer marker known as RECAFtm, which is found on malignant cells from a variety of cancer types but is absent in most normal or benign cells.  BioCurex has signed a licensing agreement with Abbott Laboratories for BioCurex's RECAFTM Cancer technology as outlined in a joint press release dated March 29, 2005. The release noted that the cancer marker RECAFTM has emerged as a potential biomarker that may be useful in the development of new cancer diagnostics tests. Preliminary studies from the investigators at BioCurex have reported a high level of clinical sensitivity and specificity for RECAF in many of the most common cancers, including prostate, breast, colorectal, lung and others.  To read more about the Company, please visit the News section in our web site (www.BioCurex.com).  Note:  The Company has not authorized the release of this information in any form that contravenes the Communication Act and will not be responsible for unsolicited massive distribution of this material by e-mail or facsimile by unauthorized parties. Statements in this press release, which are not historical facts, are "forward-looking statements'' within the meaning given to that term in the Private Securities Litigation Reform Act of 1995. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results could differ materially from expected results.  Contact:  Ricardo Moro  BioCurex, Inc.  Tel: (604) 207 9150    We Value Your Feedback   Got comments, questions or suggestions? Send 'em on over: Editor@smallcapnetwork.com If you wish to send a written request or inquiry, please send it to our physical address: TGR Group, LLC 4653 Carmel Mtn Rd Suite 308 #402 San Diego, CA 92130 Multicell Assembles A Biotech Dream Team You've got to respect a company that tells you what they're going to do, then goes out and does it. So, kudos to Multicell Technologies (OTCBB: MCET), as they just confirmed progress in the development of an MS-related fatigue treatment. The drug is now entering latter phases of testing in the United States on the heels of promising Phase IIb testing in the United Kingdom. Where is it all going? If the drug treatment progresses satisfactorily through phase II and then phase III clinical trials, Multicell will be the only treatment provider for the MS-related fatigue market...estimated to be worth a total of $3 billion during the period that Multicell would be protected by its patent.  Read the rest by clicking here.   Earnings? Who Needs Earnings When You're In The Car Business?  OK, despite the fact that we were bullish on the auto industry (per the July 19th blog entry), even we have to admit a little shock about the Dow Jones Automobile Index (DJUSAU) being up more than a full percentage point on Monday. Why? Ford (NYSE: F) reported a mere $5.8 billion loss in their third fiscal quarter...the worst loss in over 14 years. As if it weren't bad enough, they're looking for things to be even worse next quarter! So how badly were Ford shares hit? Shares closed 1.3% lower. Frankly, I'm surprised it wasn't worse, especially in light of all the profits that could be taken, with the stock 30% above its June low of $6.06.  Even more impressive is the strength the rest of the auto sector is showed despite the problems that the nation's second biggest auto-maker confirmed. Normally this group's icon, at least the domestic one, would serve as a proxy for the rest of these stocks. Not this time though. The market is shrugging it off, assuming not all of these symptoms have infected the rest of the players in the auto industry. And with Ford gaining 4.5% on Tuesday, the market doesn't seem to even think Ford's symptoms are even infecting Ford.  What's our take? Hey, we're not going to fight the crowd here. The fact that the group is higher despite plenty of reasons not to be tells us the buying interest goes deep. Maybe Toyota Motor (NYSE: TM), General Motors (NYSE: GM) and other auto manufacturers are still worth a look, as mentioned in the blog a handful of times a few weeks ago. The charts sure look pretty solid to us.    Two Encouraging Charts: EAG, and CVM  You ever heard the phrase 'The bigger they are, the harder they fall'? It can be true of stocks as well. Most investors get a little nervous (and rightfully so) when an issue puts up giant gains in just one day - it almost always seems to invite a reversal.  However, it isn't necessarily a bad thing. You just have to exercise a little patience when - or even if - responding to the surge. Not one, but two of our focus company stocks may be a prime illustration of this point.  On the 16th, CEL-SCI (AMEX: CVM) rocketed from 67 cents to 76 cents, resulting in a one-day gain of 13%. The gain was impressive, but wound up being too much, too quickly. The stock eased back to a low of 70 cents four days later, after trading as high as 81 cents the day after the big gain. It pays to keep watching when you get such a move. CEL-SCI shares were up to as high as 79 cents on Tuesday, quickly recovering from the pullback seen just a few days earlier.  Eagle's (AMEX: EAG) chart went through the same process, getting launched from 76 cents to $1.03 on the 16th (and had been as high as $1.12). The stock fell back, all the way to 70 cents by Monday. But, the 20 day moving average line acted as support, and pushed shares back up to a high of 90 cents on Tuesday. That's a 25% gain from Monday's close...and probably one that not many people figured was going to materialize.  To see charts of both stocks, click here.  The implications? There are two. First, there's always more to the story than one or two days. In this case, the surge may have been a brief flash of what the market really thinks about CEL-SCI's or Eagle's stock. The dip was just a second chance at a low entry point. Pay attention to high volume rallies, even if the immediate result is a dip. Second, buying on a dip is like catching a falling knife, but simultaneously, buying after a big move isn't really any smarter. The best course of action is probably somewhere in between. To make the most of these opportunities though, you have to keep these names on your radar for a while - to see how they play out.  Subscribe Information is power and timely information is profitable. Become informed and profit from SmallCapDigest Profiles and Trading Alerts by becoming a Preferred Member today. There is no cost associated with your email subscription. Add your email address below and make sure to check your email inbox and confirm your opt-in request to start receiving the SmallCapDigest Email Newsletter on a regular basis. To ensure newsletter delivery, you can add any additional email addresses you may have to the SmallCapDigest Member List. 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TGR is not a registered investment advisor or broker-dealer. All companies are chosen on the basis of certain financial analysis and other pertinent criteria with a view toward maximizing the upside potential for investors while minimizing the downside risk, whenever possible.  Moreover, as detailed below, TGR accepts compensation from third party consultants and/or companies, which it features in the publication and circulation of SCD. To the degrees enumerated herein, SCD should not be regarded as an independent publication.  Click Here or go to http://access.smallcapnetwork.com/compensation_disclosure.html to view our compensation on every company we have ever covered, or visit the following web address: http://www.smallnetwork.net/profile_disclosure.html for our full profiles and http://access.smallcapnetwork.com/short_term_alerts.html for Trading Alerts.  TGR Group LLC has been paid a fee of $15,000 by MultiCell Technologies for coverage of the company. In addition, TGR Group LLC has been pledged 100,000 warrants with an exercise price of $.60, convertible into restricted shares of Multicell, and 100,000 warrants with an exercise price of $.40, convertible into free trading shares of Mutlicell by Trilogy Capital Partners for coverage of the company. TGR Group, LLC has been paid a fee of $25,000 cash and 115,000 shares of newly issued restricted stock by Eagle Broadband for coverage of the Company. TGR Group LLC has been paid a fee of $25,000 and 150,000 shares of newly issued restricted stock by Cel-Sci for coverage of the Company. Additionally, back in November of 2002, TGR Group LLC was paid a fee of $25,000 and 250,000 shares of newly issued restricted stock of Cel-Sci for coverage of the company until November of 2003. The aforementioned 250,000 restricted shares became free trading under SEC rule 144 and were sold in the open market prior to the company entering into a new contract agreement with TGR Group in February of 2006. TGR Group LLC has been paid a fee of $25,000 and one million newly issued restricted shares by Biocurex for coverage of the company. Under SEC Rule 144, all one million issued restricted shares are now eligible for sale into the public market. TGR Group has submitted the appropriate filings to sell the shares. In addition, on March 22, 2005, TGR entered into an extended agreement with Biocurex for a fee of 25,000 newly issued restricted shares and on July 1, 2006 TGR entered into another extended agreement with Biocurex for an additional 100,000 shares of newly issued, restricted stock. From time to time TGR sells shares received as compensation for coverage of client companies. Shares received are sold in the open market. Since the shares are received as compensation for services as previously disclosed, and not for investment purposes, TGR does not view the sale of the shares as contradictory to any opinions delivered in the content. 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