It was a busy week for Calypte Biomedical (OTCBB: CYPT), the developer and marketer of the only two FDA approved HIV-1 antibody tests for use with urine samples. First, the company filed its 10Q for the period ended September 30, 2003, after completing an independent investigation into its operations by outside counsel. The filing noted that “early indications, based on meetings with high-level Chinese authorities in which both we and Marr representatives or contacts have participated, lead us to expect that we will generate significant revenues from the sale of our urine rapid test following the completion of our regulatory submission and the receipt of regulatory approval in China during 2004”. We believe this is the principal reason that the Marr Group invested $12.5 million in the company and provided an additional note for $10 million. The company, according to the filing, also indicated that it was initiating clinical studies to finalize its rapid product platforms and to obtain the necessary approvals in key African countries such as Kenya and South Africa. It expects the rapid products will be available in Africa no later than this Summer. After the filing, CapStone Investments, an independent buy-side boutique research firm, which gets paid by institutional investors for generating ideas, initiated coverage of CYPT with a “Long-term Buy” rating and a price target of $2. In heavy and volatile trading, the stock ended the week at $0.73, up 4 cents.
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