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Stonegate Report About Unigene Laboratories Inc.
Date:3/13/2008

therapies address the reduction of pain and the suppression of inflammation; however, no disease modifying therapeutic is available for OA. In addition to a well-established body of evidence regarding calcitonin's effect on bone resorption, both in vivo and in vitro clinical studies suggest that calcitonin may have chondroprotective qualities (counter the acceleration of cartilage degradation), while at the same time, mitigating pain. With 21 million people suffering from this disease in the U.S. alone and with no curative treatment available, a positive outcome in this trial could open an enormous opportunity for Unigene.

Long-term positive industry outlook in the osteoporosis market - The majority of Unigene's pipeline is focused on finding a more efficient delivery of current products that address the osteoporosis market. The osteoporosis market is poised for solid growth over the long-term. Datamonitor has valued the market at $8.7 billion in 2007. Fueled by pipeline products and an aging population, the market is projected to increase to $11.1 billion by 2016. The osteoporosis market is experiencing significant change that can be described as transitional rather than revolutionary. Products that improve bioavailability, tolerability and/or provide more efficient and convenient delivery methods of current drugs are projected to be significant growth drivers in this market over the next ten years. Successful products will have the potential of producing blockbuster revenues. Unigene is positioned at the heart of this high-growth segment of the osteoporosis market.

Safety concerns could dramatically increase sales of calcitonin-based products - Bisphosphonate therapies and selective estrogen receptor modulators (SERMS) are the current market leaders in the osteoporosis market; however, both therapies have been associated with serious side effects. Since 2003, medical journal articles have suggested that long-term use of bisphosphonates could lead to
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