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AN Product Portfolio GalaGen's lead products in development target serious human gastrointestinal diseases. Natural beneficiaries of several of these products include AIDS and oncology patients with compromised immune systems. • SPORIDIN-GTE' AIDS diarrhea, caused by Cryptosporidium parvum • CANDISTAT-GTM Yeast infections of the mouth and esophagus caused by Candida albicans(thrush) • HELISTAT-G Ulcers and gastritis caused by Helicobacter pylori GalaGen has a full product pipeline. Products at earlier stages in development are directed at antibiotic-associated diarrhea caused by Clostridium drfficile, and traveler's diarrhea caused by Shigella flexneri and enterotoxic E. coli. In addition to these products, GalaGen can generate new products in an accelerated way with a minimum of early stage preclinical research and at relatively low cost. Once a pathogen target has been identified and immunizing materials obtained, GalaGen can produce clinical trial quantities of the antibody product in less than six months. Safety The safety of GalaGen's products is unique for drugs in development. The burden of proof for any new pharmaceutical is safety and efficacy. Many new products drop out of development due to safety concerns, even though they hold high promise for efficacy. GalaGen's products consist of common milk proteins and their safety profile should be similar to milk itself. They should be appropriate for administration to all age groups, with the exception of those individuals who cannot tolerate drinking dairy products due to an allergy or severe lactose intolerance. The Company has demonstrated that no measurable antibody reaches the systemic circulation. The probability of bringing one of GalaGen's bovine antibody products to market should be increased substantially by these safety features, especially when compared to a new chemical entity or biopharmaceutical. Activity Bovine antibodies represent a new class of oral therapeutics. While antibodies have been used for decades to prevent or treat human infections —such as gamma globulin shots for hepatitis—antibodies have not been typically administered orally to treat gastrointestinal infections. Bovine antibodies are uniquely structured to resist digestion in the upper gastrointestinal tract and bind with and kill or inhibit pathogens throughout the gastrointestinal system. In addition to their safety, bovine antibodies are: • active against all major classes of human pathogens: bacteria, viruses, fungi and parasites. • target individual pathogens without destroying beneficial bacteria. • polyclonal, meaning that they target many individual features of a pathogen and therefore diminish the likelihood that a pathogen will develop resistance to the product.