Article: STRESSGEN REPORTS MIXED HSPE7 DATA, MOVES DRUG FORWARD IN RRP.

Byline: Karen Pihl-Carey, Staff Writer

Recurrent respiratory papillomatosis represents the first indication that Stressgen Biotechnologies Corp. intends to pursue with its drug HspE7, based on positive Phase II data released this week.

It plans to file a biologics license application by mid-2007.

That's the good news.

The bad news is that the drug failed in a non-pivotal Phase III trial for a larger market - anal dysplasia.

The company's stock (TSX:SSB) dropped C46 cents Wednesday, or 26 percent, to close at C$1.31 (US98 cents).

"We took our estimates down," said Brian Bapty, an analyst with Raymond James Ltd. in ...

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