Memory Pharmaceuticals Corp. (MEMY)

Memory is a biopharmaceutical company focused in the discovery and development of drugs for the treatment of a range of central nervous system (CNS) conditions. These conditions include neurological diseases associated with aging, such as Alzheimer's disease, and also include certain psychiatric disorders, such as schizophrenia, bipolar disorder and depression.

The company currently does not have any commercial products for sale and does not anticipate having any commercial products for sale within the foreseeable future. To date, its revenue has been derived from research collaborations with Roche and Amgen for the nicotinic alpha-7 agonists and PDE10 inhibitors product pipeline respectively. These revenues consist primarily of upfront license fees, milestone payments and research and development funding.

Developed in partnership with Roche, MEM 1003, used for the treatment of Alzheimer's disease and bipolar disorder, is expected to release Phase II trial results in first half of 2007. The Phase I and II trials for MEM 63908 and MEM 3454 respectively, have been initiated. The PDE10 Inhibitor program, in collaboration with Amgen, is currently in its Pre-clinical trial stage.

For the nine months ended September 2006, Memory's revenues decreased 10% reflecting decrease in fees for research services from Roche, due to a change in the Roche Agreement with respect to Memory’s revenue accounting policy. However, the company should witness a consistent research revenue increment starting fiscal 2007 with respect to MEM 1003 and MEM 3454. Net loss decreased by an impressive 42%, primarily due to a 100% increase in interest income attributable to higher investment balances and a 9% fall in research expenditure related to MEM 1003 and MEM 3454.

Based on its multiple near-term clinical milestones, the progression of its early–stage pipeline and results of the Phase II trial results awaited in fist half of fiscal 2007; Memory appears to be a likely outperformer.