From time to time I post results of my $1000.00 Penny Stock Experiment. Today will be a little bit different. I want to post a penny stock that I predict will take off to great heights in the coming months.

The company name is Biopure Corporation (NASDAQ: BPUR). Back in early April I bought 4000 shares this company after reading that the Federal Drug Administration (FDA) rejected the companies primary product Hemopure from clinical trial.

First about Hemopure. Hemopure is what is considered a blood substitute. It is for use in trauma victims where blood is not readily available or for other reasons, such as religion, blood transfusion is not an option. You will here this product constantly referred to as an oxygen delivery system, but just keep in mind that it replaces human blood.

So why was it rejected? The FDA said that there are safety concerns related to the potential of heart and kidney damage. Fair enough I thought, not a good investment idea…so I was going to pass. That was until I realized that the FDA, with their rejection of Hemopure, had declared war on the US Military.

If there is one thing that I know, it is you don’t piss off the US Military. Upon hearing this news, The US Navy fired off a scathing report, saying that the FDA did not have a clue what they were talking about. In fact the Military accused the FDA of conflict of interest, which does not surprise me. I have never gone on a rant about the FDA, but suffice to say I think it is one of the most corrupted arms of the Federal Government. I will sound off on them at a later date but for now I will stick with Hemopure and why I think it is a can’t miss opportunity.

The military has a great need for this product, especially for battlefield trauma where blood products are not available. Hemopure stores for months at room temperature and is intended for short term use to aid in patient recovery. In other words, soldiers, who would have died on the battlefield due to blood loss, have a chance with this product.

From the Boston Globe:

Navy rips FDA for blocking clinical trial

Report says agency biased on Biopure’s blood substitute

An internal Navy report blasts the Food and Drug Administration for blocking clinical trials of a blood substitute manufactured by Biopure Corp., a struggling biotech company based in Cambridge.

The Navy ultimately hopes to use the experimental product, called Hemopure, to treat military personnel wounded in battle, where traditional blood transfusions aren’t readily available. But for the past four years, the FDA has consistently rejected Biopure and the Navy’s efforts to test the product in clinical trials, citing safety worries and other concerns.

Now the Navy has commissioned a strongly worded report, obtained by the Globe, that concluded the FDA reviews were “faulty.”

“The reviews had consistent patterns of erroneous, misleading, and anecdotal statements, reporting bias, changing requirements, no ’sense of urgency,’ ” as well as conflicts of interest.

FDA spokeswoman Karen Riley said the agency recognizes the importance of developing products to help both military and civilian trauma patients, but must also make sure the trials do not “involve unreasonable risks to patients. There have been significant safety concerns raised about this class of products,” Riley said, noting some studies linked the products to toxic effects, including heart and kidney damage.

Biopure declined to comment.

A Navy spokesman said it plans to submit an edited version of the report to research journals, but added it is premature to discuss the findings. The report, dated March 13, was written by Captain Daniel Freilich, a program director at the Naval Medical Research Center, along with 13 coauthors, mostly university medical professors.

One of the report’s academic coauthors said he has been frustrated by the FDA’s resistance to allowing the Navy tests to go forward, because so many patients die of massive blood loss on their way to the hospital.

“If we can get a blood substitute, it would make all the difference in the world,” said Joseph Acker, executive director of Birmingham Regional Emergency Medical Services System in Birmingham, Ala. “It would probably save more lives than anything we could do in EMS.”

Still, blood substitutes have been dogged by safety concerns.

Last year, the Journal of the American Medical Association published a study that concluded hemoglobin-based blood substitutes, such as Hemopure, are potentially deadly and should not be tested in humans. Biopure subsequently demanded a retraction and sued the coauthor of the article – a senior investigator with the National Institutes of Health – for libel, saying the study was flawed. Hemopure is manufactured from cow’s blood.

South Africa, the only country to approve Hemopure for human use, decided to revoke its approval last year following the Journal of the American Medical Association study. The company is appealing that decision.

But a coauthor of the Navy report said the safety concerns are moot, because the Navy has proposed testing Hemopure in patients with severe blood loss who would otherwise likely die. Last month, the Navy submitted a revised application to test the drug in trauma patients.

“There is a huge need,” said Lewis Kaplan, associate professor of trauma surgery at the Yale School of Medicine in New Haven, adding he was baffled by the FDA’s resistance.

But Biopure may be running out of time. The company was forced to lay off all but five employees to conserve its dwindling cash.

In February, the company hired Newbury Piret & Co., a Boston investment banking firm, to advise on its strategic options.

Biopure’s stock closed at 17 cents yesterday, giving the company a market value of just $7 million.

The company has also struggled to distance itself from several former executives.

In 2005, the Securities and Exchange Commission sued Biopure and several former executives for misleading investors about Hemopure’s prospects for approval. The parties ultimately settled.

In addition, another former Biopure executive, Howard Richman, pleaded guilty last month to pretending to be gravely ill with colon cancer to avoid a suit from securities regulators. Richman, who left the company in 2003, paid a $150,000 fine last year and faces up to 10 years in prison.

In October 2005, Biopure warned the FDA that the SEC probe presented a possible conflict of interest, because some of the FDA reviewers were also witnesses in the case against the company.

I have already made some significant scratch off of this company. Like I said in the beginning, I bought 4000 shares. What I didn’t tell you was that I sold all of them 2 days later. 2000 at $0.331 and 2000 at $0.313. My initial by in price was $0.178 per share. That is $576.00 profit for two days of investing. Not bad. Not bad at all.

I had sold because everyone was buying in hoping that the FDA would quickly overturn their decision. I knew that the wheels of government turn slowly thus waited a few days for the price to fall back. I then bought in at $0.22799 per share for 5200 shares. The price on this has fluctuated up and down slightly since my second buy and I will continue to hold my position as I basically playing this stock for free.

So if you read the above news story you will see that the military want this product. I live with the belief that when the military wants something bad enough…the military gets it. I believe that the FDA will be pressured into turning their decision around and soon.

Why?

1) The military wants it.

2) Religious groups, such as Jehovah’s Witnesses, accept this product.

3)A lot of doctors are staking their reputations and careers on this company and product. In fact you will see some video clips links below from medical professionals involved in recent administering of this product. I don’t know what these experimental treatments mean with respect to the FDA denying clinical trials but the product is being used right now.

The medical professional explain in great detail all of the benefits of this product. This is can’t miss and a carries the Mad Ape Seal of Approval – whatever in the hell that means?

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http://hfrp.umm.edu/cucases/part1.html
Welcome: Colin Mackenzie, M.D., Professor of Anesthesiology, Associate
Professor Physiology, University of Maryland School of Medicine:
Moderator
Extreme and Total Support in Autoimmune Hemolytic Anemia: Gary
Thompson, M.D., Medical Director, Saint Luke’s Blood Management
Program, Saint Luke’s Hospital, Kansas City

http://hfrp.umm.edu/cucases/part2.html
Compassionate Use HBOC-201 for Unexpected Surgical Bleeding when Blood
was not an Option: Patricia Ford, M.D., Medical Director of Bloodless
Medicine and Stem Cell Transplant Programs, Pennsylvania Hospital,
Clinical Associate Professor of Medicine, University of Pennsylvania:
10 min

http://hfrp.umm.edu/cucases/part3.html
Update on Clinical Use HBOC-201 in South Africa: Lewis Levien,
M.D.PhD, Specialist Surgeon, Life Fourways Hospital, Johannesburg: 10
min

http://hfrp.umm.edu/cucases/part4.html
A Bridge to Blood: Paul Marik, M.D., Professor of Medicine, Director
of Pulmonary and Critical Care, Thomas Jefferson University
Philadelphia: 10 min

http://hfrp.umm.edu/cucases/part5.html
Management of Acute Symptomatic Anemia with HBOC-201 in a Jehovah’s
Witness Patient with Acute Lymphocytic Leukemia: Laura L. Donahue,
M.D. Attending Physician Monter Cancer Center North Shore-Long Island
Jewish Health System, Instructor, Clinical Medicine, NYU School of
Medicine: 10 min

http://hfrp.umm.edu/cucases/part6.html
Cerebral and Mixed Venous Perfusion Markers in a Trauma patient during
HBOC-201 Infusion: Jonathan Marinaro, M.D., Assistant Professor of
Surgery and Emergency Medicine, University of New Mexico, Albuquerque:
10 min

http://hfrp.umm.edu/cucases/part7.html
The Compassionate Use HBOC-201 Physician Facilitator: Gerson
Greenburg, M.D., Emeritus Professor of Surgery, Brown University, Vice
President Medical Affairs, Biopure Corporation, Cambridge, MA: 10 min

http://hfrp.umm.edu/cucases/part8.html
Temporizing support for a Jehovah’s Witness Patient after Kidney
Transplant: Hamid Rabb, M.D., Professor of Medicine, Physician
Director, Kidney Transplantation, Johns Hopkins University School of
Medicine: 10 min

http://hfrp.umm.edu/cucases/part9.html
PANEL Gary Thompson, M.D; Patricia Ford, M.D.; Lewis Levien, M.D.;
Paul Marik, M.D.; Laura Donahue, M.D.; Jonathan Marinaro, M.D.; Gerson
Greenburg, M.D.; Hamid Rabb, M.D.; Aryeh Shander, M.D.: 25 min

Disclaimer: I am not a professional investment adviser. This blog posting is for information purposes only. Investing is not an accurate science and you pays your money and you takes your chances. Do not come bitching to me if the price heads south.

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