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  Interview with Mr. Jack Clifford, the President and CEO of ProCyte Corporation  
The following is a transcript of the guest appearance in our chat room on April 22, 1997, by Mr. Jack Clifford, the President and CEO of ProCyte Corporation. ProCyte Corporation is a Kirkland, WA-based pharmaceutical company that is currently developing a topical treatment for hair regrowth called Tricomin, and has a new FDA approved transplant product called GraftCyte.

Disclaimer: The information contained herein is offered solely as an education service and is not intended to supplant individual professional consultation, nor is it an endorsement for the use of the drugs and products described herein

Farrel says
, "Jack Clifford is Procyte's President and CEO and is here to tell us more about their new product called GraftCyte as well as to update us on the Trichomin testing. So I will turn the floor over to our special guest tonight Mr Jack Clifford"

Jack Clifford says, "First of all please hold questions until the end of my introductory statement. We're pleased to have this opportunity to present our technology and current product focus, and to respond to your questions. As you may know, ProCyte was established over 10 years ago, by Dr. Loren Pickart and a group of businessmen. Dr. Pickart's early work in peptide-copper research was instrumental in giving ProCyte its initial scientific platform. ProCyte's scientists have significantly expanded that knowledge base as the company identified new compounds, formulations, doses and clinical utility of a family of copper peptide compounds. It is important to note that differences in dose, formulation and peptide structure have been clinically shown to substantially alter the intended effect of a compound.

One fairly recent development is the compound we call PC1358, also tradenamed Tricomin solution. PC1358 is a second generation compound that ProCyte developed and has tested for treatment of androgenetic alopecia (AGA). While it is a peptide that chelates copper, it is not the same compound as that found in Iamin or GraftCyte - both of which are wound care products. We recently announced positive results of a Phase II study of PC1358 in 36 subjects with early to midstage AGA. At present, we are evaluating future development plans for this compound.

On a separate product focus from our compounds that actively promote hair growth, ProCyte has been studying the use of its compounds and products for wound care. We have a new product that we believe have a positive effect on outcomes in hair transplant surgical procedures. GraftCyte Moist Dressings will be promoted to the physician for use post-transplant. The GraftCyte Dressings contain a copper peptide compound in a new formulation. The dressings are first applied by the physician immediately upon completion of the transplant. Each dressing provides a copper peptide-enriched moist environment, that has been shown to help the transplant area repair faster than historical controls. Following the initial application at the time of surgery, the patient will take the remaining dressings home and follow physician instructions for keeping the transplant area moist and protected.

We hope to follow up these two wound care products with additional products that augment the body's natural wound repair processes. We will keep you advised of future products through our web page at I'd be happy to respond to your questions about these products or the Company in general.

B1stman: "Can you give further details about the phase 2 results just released...they seemed somewhat spotty to some of us."

Jack Clifford says, "The hair count data was promising."

Ginko: "When will we see Trichomin on the market?"

Jack Clifford says, "We are seeking to license Tricomin to a consumer products company. It will depend on their plans."

Bardo: "Why was the trial stage over such a limited time, and a limited number of participants."

Jack Clifford says, "Because it was an early phase 2 study. We were looking for confirmation of the effect we saw in an earlier study. Typically phase 3 studies are extended beyond phase 2 studies in length and number of participants."

B1stman: "But there was no additive weight??

Jack Clifford says, "That is correct."

Bradley: "How close is Procyte to striking a deal with a cosmetic firm for tricomin?"

Jack Clifford says, "We are in discussions and cannot comment further at this time."

B1stman: "Any explanation for the deteriorating stock price and when we might see some improvement??

Jack Clifford says, "All biotechnology companies are down. It's always hard to understand why the market does or doesn't react in a certain way."

Look: "Will tricomin be a prescription drug?"

Jack Clifford says, "Depends on the licensors development strategy."

Maximus: "How does tricomin work ?"

Jack Clifford says, "Research has shown that the copper peptide technology modulates the body's natural biological processes."

Maximus: "How long would it take to achieve good results ?"

Jack Clifford says, "In the phase 2, positive outcomes were seen after 24 weeks of treatment."

B1stman: "Have you procured patent protection for tricomin yet??

Jack Clifford says, "Yes."

Bradley: "What differentiates tricomin from Folligen?"

Jack Clifford says, "Tricomin is a patented copper peptide technology, Folligen is not."

Ginko: "Do you think that Piliel from Life Medical Sciences will be any competition for Trichomin?"

Jack Clifford says, "We don't know at this time. We have not seen their data."

Willard: "In what form is tricomin to be delivered to the scalp?"

Jack Clifford says, "It is in a topical solution."

Look: "Has Iamin been shown to promote hair growth? Is Iamin gel "stronger" or "weaker" than tricomin?"

Jack Clifford says, "Iamin is a different copper peptide than tricomin. We have never clinically tested Iamin for hair growth."

Ginko: "Do you think that GraftCyte has regrowth potential"

Jack Clifford says, "GraftCyte is used following hair transplant surgery. GraftCyte enables the body's natural healing process to occur."

B1stman: "Any ideas on what the cost of Trichomin will be"

Jack Clifford says, "Not at the present time."

Bardo: "But why wouldn't you use say 300 men in the studies, over 6 months to see if the product did indeed work, since you wouldn't want to waste time and effort on a product that didn't work?

Jack Clifford says, "Because it would take much longer than 6 months to enroll the subjects and conduct the study."

Bardo: "How do you select participants in your clinical studies?"

Jack Clifford says, "They are screened by the clinical investigator."

Bardo: "What are current and future treatments for hair loss."

Jack Clifford says, "At present there is only approved hair loss treatment that can make hair loss claims, that is minoxidil. The future is looking hopeful with recent clinical results from Merck and others, including us."

B1stman: "When will the company become profitable??"

Jack Clifford says, "The company is just introducing it's new products in 1997 and expect continual roll out in 1998. I can not comment on profit."

Maximus: "How does Trichomin work, and what does it modulate in the body biological processes ?

Jack Clifford says, "Primarily through follicle protein synthesis and activation of the hair cycle. We believe these are due to the copper delivery from the peptide."

Maximus: "What are your views about propecia ?"

Jack Clifford says, "Interesting science."

Maximus: "Are Graftcyte and Tricomin different names for the same product ?"

Jack Clifford says, "No. They contain different copper peptide compounds."

Bardo: "What side effect have potential to arise, or did you see in the trials of Trichomin?"

Jack Clifford says, "We have seen none."

B1stman: "When will phase 3 trials start and be completed in your estimation...and how will u enroll people

Jack Clifford says, "We are still evaluating future plans for this compound. No study is presently planned or in progress."

Look: "Tricomin looks promising. As an investor, when could I reasonably expect Tricomin to start boosting sales?"

Jack Clifford says, "It depends on finding a partner for tricomin. GraftCyte will be available for sale shortly."

Ttown: "How long will it be before your products are put in shampoos and conditioners and marketed as health and beauty aids instead of a drug."

Jack Clifford says, "We are currently developing new products in these areas."

B1stman: "So tricomin is way off from coming to market??

Jack Clifford says, "Again it depends on finding a partner and our own internal product development. We may introduce other copper peptide technologies in these new products."

Bardo: "If it works as you state, why wouldn't you rush this to the market?"

Jack Clifford says, "The development costs can be very significant for a drug, there are faster options we are considering."

Bardo: "Jack-What can you tell us of your future plans"

Jack Clifford says, "We are attending hair transplant medical seminars to introduce GraftCyte."

B1stman: "Why do u feel u need a partner for tricomin but not your other products??

Jack Clifford says, "The cost of drug development is lengthy and costly."

Maximus: "Do u believe if propecia became approved, that tricomin will be killed by the competition ?

Jack Clifford says, "We believe that that there are markets for a number of effective products. Some individuals may chose to treat their hair loss in different ways."

Bardo: "What are some of the options your previously mentioned for moving Tricomin forward?"

Jack Clifford says, "In addition to a partner for a drug application, there are many other cosmetic alternatives."

Look: "why not just bring Tricomin to market as a non-prescription drug like Iamin Gel. Is this possible? Are you considering it?

Jack Clifford says, "Yes, non-drug options are being considered."

Ttown: "In your clinical phase 2 testing it was stated that there was no significant hair weight increase with Tricomin. If it is so promising how come it didn't produce increased hair weight."

Jack Clifford says, "The process of regrowing hair is a long term proposition. We believe that an increase in hair counts will, in time, lead to an increase in hair weight."

Johnson: " Are there any known side effects when taking tricomin?"

Jack Clifford says, "none."

Willard: " What makes Tricomin either a "drug" or a "cosmetic" - strength?"

Jack Clifford says, "The label claims and how they are supported by clinical data."

Ttown: "How long before the other products you mentioned are available."

Jack Clifford says, "GraftCyte products will be available in May. The others shortly thereafter."

Ginko: "What are your thoughts on Dercap / Aminexil from L' Oreal ?"

Jack Clifford says, "We know very little of this product."

Farrel says, "What is the strength difference in the Gel and Gauze GraftCyte products"

Jack Clifford says, "We don't comment on proprietary formulations."

Ginko: "What is the difference in your Iamin Gel and Protect and Restore from SBI?"

Jack Clifford says, "The Iamin contains our copper peptide technology which has been clinically tested and FDA cleared."

Farrel says, "Tell us more about the benefits of using the GraftCyte Product after a transplant."

Jack Clifford says, "GraftCyte can help you achieve you hair transplant goals in a shorter time by keeping the sites moist and supplied with essential nutrients."

Farrel says, "Will it prevent the transplanted hairs from initially falling out."

Jack Clifford says, "We have not observed that effect in every case."

Ttown: "W hat do you think about nioxin as compared to your product tricomin."

Jack Clifford says, "What is nioxin? "

Farrel says, "I believe its a product sold in salons, but I think you've answered the question :)"

Johnson: "Where can I purchase Iamin, at a local pharmacy or only though mail order?"

Jack Clifford says, "Iamin Hydrating Gel is available through distributors and some pharmacies. Customer service is available at our web site."

Ginko: "What are your thoughts on Viviscal from Finland?"

Jack Clifford says, "We have no thoughts on this."

Farrel says, "If a person was having a transplant would there be any benefit to using Iamin as well as Graftcyte"

Jack Clifford says, "Iamin gel is not the correct product for transplant sites. It would be useful to use Iamin Gel on the donor site. The gel is formulated to serve as a barrier and an essential aspect of hair restoration success is that the surgical area be kept moist for a period post-surgery."

Ginko: "Can a person fill out a application to be involved in a study?"

Jack Clifford says, "No. The proper procedure for study participation is recruitment by the clinical investigator."

Farrel says, "Ok thank you Jack for coming and informing us it was very interesting and we enjoyed having you as a guest."

Johnson: " Thank you for your time Mr. Clifford, it's been a very informative hour."

Jack Clifford says, "Thank you Farrel."

Farrel says, "Great well thanks to all who attended and thanks again to Jack and ProCyte"

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