Product Line or Service

The Company has initially focused on demonstrating the core technology using well-known and established peptide and protein drugs, as well as small drug molecules. Many of these drugs are water-insoluble, which makes delivery difficult, and in many cases impossible. Toxicity is frequently a problem. By attaching these drugs to Lapid’s patented core technology platforms, one can increase the solubility significantly and develop therapies with improved efficacy, reduced side effects and better patient compliance.

Technology/Proprietary Rights

Lapid’s long-acting pro-drug technology is based on attaching hydrophobic moieties through covalent bonds to known active drugs. In this concept, drugs lose both their native structural features and their biological potencies, making them unrecognizable to various degradative systems. Consequently, they persist much longer in circulation. Following administration, these drugs convert back under physiological conditions (i.e. pH 7.4 and 37 ºC) to the native, active drug, at slow rates and in a homogeneous fashion. The conversion rate is determined by the rate of cleavage of the chemical moiety from the drug. Therefore, the number and type of the chemical groups that are coupled to the drug will determine the rate of conversion. Patents have been filed internationally covering the Company’s novel technology.

Market Opportunities

Lapid has developed a unique drug delivery technology that is especially applicable to proteins and peptides, as well as small molecules. The market for drug delivery technology (Decision Resources, November 1998) is now recognized to be an important component in the biopharmaceutical industry. The world market is expected to grow to over $ 120 billion by 2007. Worldwide sales of peptide drugs accounted for more than $2 billion in 1997 and are projected to “sky rocket” to over $ 100 billion in 2007 due to the successful mapping of the human genome which will yield many new protein drugs. The projected sales of peptide and protein drugs for which Lapid’s technology can be utilized will total over $11 billion. The major applications the Company is pursuing cover anti-cancer drugs, drugs for the Central Nervous System (i.e., pain control) and diabetes.

Marketing/Sales and Distribution

The Company’s two-pronged strategy is to develop several applications through Phase I (human safety) and Phase II (efficacy) clinical trials and seek a strategic partner who will complete the regulatory process and market the product. In addition, the Company will seek out companies who will license the Lapid technology for their proprietary drug.

Manufacturing

The Company does not plan at this stage to build a manufacturing facility. Contract manufacturers will be utilized to produce the product necessary for the clinical trials.

Competition

There are over hundred drug delivery companies, including several large companies that have a large range of technologies to offer pharmaceutical companies. These include Alza, Elan, Cortecs, etc. Some of these companies are working on systems that would compete with the Lapid applications and are in a more advanced stage of development. However, Decision Resources, a major market research firm, reports that “only 20% of the need has been met by currently available technologies.”