Hard To Treat Diseases Inc. (OTCPK: HTDS)

Hard To Treat Diseases (HTDS) operates two medical subsidiaries in Serbia, Europe and Mainland China. HTDS is a parent company with operations in an East European medical company (Serbia) Slavica Bio Chem Co (formerly ReNuYu Biochmem PLC and ReNuYu Biochem Inc) and in China Mellow Hope Inc. In Serbia, the Company’s primary focus involves the enhancement and modification of existing approved drugs such as “Virazole” for the purpose of chemical repair of damage to the CNS (central nervous system), MS (Multiple Sclerosis), SARS, Hepatitis C and HIV. Other interests include an online cosmetics company. Mellow Hope is China-based and is the biggest exporter of Biological Vaccines in China. It has a product line that encompasses vaccines for influenza, tetanus, diphtheria and other diseases; Blood based products including human rabies immunoglobulin; and active pharmaceutical ingredient (or APIs) for injection.

Source: Reuters.com, SEC Filings.

Financial Summary

HTDS will file the third-quarter financials on Pink Sheets by the due date of November 15, 2009. The Company will also follow up with a brief news update of the financials, including the progress of H1N1 of Mellow Hope, and the positive future prospects HTDS management foresees with the upcoming Novartis acquisition of an 85% stake in HTDS’ H1N1 Vaccine partner, Zhejiang Tianyuan Bio-Pharmaceutical Co, in which by default Novartis will become the new partner. The Company will also report the research progress of its Slavica Bio Chem subsidiary’s Cancer Mind Up project and its www.mindupbioresearch.com Web site, which the company will launch this week.

Regarding the Intellectual Property dispute with Blue Earth Solutions, namely the Styro-Solve product, HTDS management reported that negotiations continue; HTDS management is hopeful for a mutually beneficial settlement.

HTDS’ merger negotiations with the EU based stem cell research company are well underway. The HTDS representatives have scheduled meetings and the start of Due Diligence for November 23-25, 2009. HTDS management is exploring various options of this lucrative deal. The scenario which HTDS management is currently favoring includes a hybrid of technology – revenue sharing model. This it would achieve through its Slavica Bio Chem subsidiary, which would earn HTDS licensing revenues. This hybrid mechanism merger would leave HTDS’ share structure undisturbed while at the same time HTDS’ would earn fees for technology and services exchanged.

Lastly, HTDS addresses the issue of the Naked Short Sellers again. HTDS is working continuously with Pink Sheets to resolve the issue as it affects the HTDS’ ranking on Pink Sheets. The ranking still warns buyers that the stock is under siege, and restricts certain normal trading activities of the security.

Source: Reuters.com, SEC Filings.

Analyst Consensus

Chart not available.

Source. www.ft.com

No consensus analysis data available.

Source: http://www.reuters.com/finance/stocks/estimates?symbol=HTDS.PK

Investment Highlights

HTDS believes it has found the best way to increase shareholder value, separate and apart from the operating performance of ope­rating subsidiaries, by spinning off and distributing shares of its wholly owned subsidiaries in the form of a special dividend to the Company’s shareholders. The common stock distributions are part of a broader strategy relating to the transition of HTDS into a company focused on the develop­ment and licensing of proprietary technologies.

Medal of Nikola Tesla

IBISS group, a research team from Slavica Biochem, received a the first place and golden medal of Nikola Tesla for the year 2005, at the International Festival of Innovations, Know-how and Creativity held in Serbia.

The Company’s Mellow Hope operating subsidiary is in process of finalizing contract details with Hetero Ltd., one of the largest pharmaceutical manufacturers in India. This contract has been in the works since March 2009, and its finalization promises solid sales boost for HTDS.

The contract between the two companies secures the supply of raw pharmaceutical material for HTDS’ Mellow Hope in the range of about $4 million. The contract completion is in final stages, and the shipments are already scheduled. This contract is bound to strengthen present and future sales.

In other company news, since September 24, 2009, when Chinese State Food and Drug Administration granted the H1N1 vaccine license to Mellow Hope’s exclusive business partner Zhejiang Tianyuan Bio-pharmaceutical Co. Ltd., Mellow Hope received inquiries from many potential buyers around the world. At the present, the most promising deals on the horizon include deals with Southeast Asia and Chile. Mellow Hope is the largest exporter of vaccines in China and the H1N1 vaccine license gives the company a great advantage over the competition. The company expects to make progress announcements on the H1N1 front shortly.

Source: http://www.htdsmedical.com/about.html

Technical Analysis

HTDS is trading above its 50-day moving average. This is considered to be the sign of a bullish trend. There is added weight to this indication because the moving average is rising and suggests that there has been buying interest in this stock.

HTDS is trading near its upper Bollinger Band. This suggests that the stock price is high relative to its recent price action.

The MACD for HTDS currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9day moving average. Second, the MACD is above 0 which implies that the underlying moving averages are trending higher.

Insider Trading Activity

Source: Yahoo Finance

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