This is a good sign. Click link...

http://micro.newswire.ca/release.cgi?rkey=1505107429&view=43406-0&Start=0

It seems that they are selling stock with regards to the SL017 compound. Companies generally do this to generate revenue for a project. It will also allow them to collect royalties in the Asian market when this compound is released. Their partner KMH in Korea is doing clinical trials and will register SL017 as a cosmetic product according to this article.

I think all of these are good signs. We should know more once Quest completes and reports their findings in June from their second set of clinical trials

http://micro.newswire.ca/release.cgi?rkey=1505148560&view=43406-0&Start=0

I don't think they would release this news and make such an agreement if the clinical trial II wasn't a success.

Jeff,

You beat me to it. Yes, I think this is very good news.

Article below from http://biz.yahoo.com/cnw/070514/quest_pharma_param_nt.html?.v=1

"Quest PharmaTech and Paramount BioSciences Sign Exclusive Multinational License Agreement to Develop and Commercialize SonoLight Technology for Dermatology Applications
Monday May 14, 11:16 am ET


EDMONTON, AB and SAN DIEGO, CA, May 14 /CNW/ - Quest PharmaTech Inc. ("Quest") (TSX: QPT - News) announced today that Paramount BioSciences, LLC, has acquired multinational rights to Quest's proprietary SonoLight technology for dermatology applications. Paramount BioSciences is a global drug development and healthcare investment firm with a portfolio of life-sciences-focused companies. The deal gives Paramount BioSciences access to a library of Hypocrellin B-derived photosensitizers which are activated by light or ultrasound energy sources. Quest's SonoLight photosensitizer technology is designed around Hypocrellin B, a complex small molecule isolated from a parasitic fungus (Hypocrella bambusae) normally found in Chinese bamboo trees. Multiple Hypocrellin B derivatives are available for evaluation in a wide variety of dermatology and oncology indications. The lead compound, SL017 formulated as a topical gel, has been combined with a widely available light source for permanent removal of unwanted hair and for treatment of actinic keratosis.
Under the terms of the agreement, Paramount BioSciences is responsible for dermatology-related development and commercialization activities outside of Canada. In addition, the agreement with Paramount BioSciences allows KMH Co. Ltd. to develop SL017 as a cosmetic for hair removal in Asia and acne in South Korea. In return, Quest will receive an immediate upfront payment and potential future milestone payments in excess of $35 million USD plus royalties on sales. Quest will retain Canadian rights for dermatology and worldwide rights to non-dermatology applications.

"Paramount BioSciences is very excited to be involved in the SonoLight program. We have already mobilized our in-house team to begin product development and lay the groundwork for the Paramount portfolio company that will continue development and ultimately commercialize this novel technology," said Bertrand Liang, Vice Chairman of Paramount BioSciences.

Quest is exploring the possibility of introducing SL017 topical gel to the Canadian cosmetic market for permanent hair removal after the completion of their ongoing clinical program. KMH has recently initiated a clinical program with the objective of registering SL017 as a cosmetic product for hair removal in Korea.

"I am very pleased to have found a strategic partner like Paramount BioSciences who shares our vision in the potential of our SonoLight Technology, and has the expertise and financial resources to develop SL017 for the U.S and European markets," said Dr. Madi R. Madiyalakan, Chief Executive Officer of Quest."

Hi everyone,

I am still thinking of some unanswered questions.

Do they want to sell only the cream or in combination with a home-use light device? Or do normal people have to buy such a home-use laser device system which cost thousands of $$$?

If they only sell the cream, do they sell it to normal people who can apply it before they go to a normal treatment?

Or will they sell the cream to some practitioners who will charge their patients extra big $$$$ for this "new technology"?

I belive I read somewhere that they also waant to develop a home-use device?

I think they do have a home use device in mind eventually. But to begin with I think this will be sold to practitioners (both the cream and the light device to be used together) and it will likely be expensive. I mean if it really can penetrate the hair follicle and be activated/destroyed by the light then this may be a ONE TIME procedure in which all the hair you want destroyed can be, permanently, without regard to the hair cycle.

This will of course be a huge advantage over current laser which is between 8-12 sessions costing up to $1000 each. As a result laser clinics (who will likely be the ones selling this new procedure) will want to charge through the nose for it so as to not completly wipe out their old laser business (and the machines they have already spent tens of thousands of dollars on).

On another note I am unsure of the sale to Paramount. If the clinical trials were going really well why would Quest want to sell off what could be a huge cash cow in the future?
On the other hand one has to asssume the results are positive, or else why would Paramount be interested in acquiring the rights?
Perhaps Quest's current finacial situation is so dire that they were happy to take the upfront payment and a percentage (royalties) of any future sales so that they could secure their immediate future?
Still it all seems a bit strange.

On a conspiracy theory note, I can't find much info on this Paramount Biosciences, and I don't believe they are a public company. Perhaps they are secretly owned by Gillette (Procter & Gamble) and they just bought the rights to bury yet another product which could challenge their worldwide aim of keeping people addicted to razors and shaving cream forever!
Mwhahahaha...scary isn't it?

If you look on their website: http://www.questpharmatech.com/sl017.htm

You see the table for the comparison of SL017 and laser removal. They are saying that there will be a significant cost advantage in their product. Hopefully that will be the case. In any event, I think people will pay a higher premium (if that is the case) for a quick and permanent solution.

As far as Paramount. I don't see anything wrong with that. Quest is looking at the bigger picture. They are working on therapies to treat things such as cancer. Paramount is giving them a large upfront payment to keep Quest's other studies and trials going. They will also collect royalties on their product which will be sold outside of Canada. From what I understand, they will still be the party selling the product within Canada. They did basically the same thing with KMH Co. which will be responsible for the Asian market. Paramount will be responsible for American and European markets.

there is a new article about quest,

the article sounds very promising, though the clinical trial I/II only started this month.

Article please...

I emailed them and asked some questions about their product SL017 and i got the respons:

"Our 50 patient clinical trial for hair removal application is expected to be completed by September of this year. Marketing strategy will be determined, at that time, based on the results."

It sounds promissing i think.