Drug Stock Points to Fountain of Youth by Malcolm Berko on Creators.com

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Drug Stock Points to Fountain of Youth

Dear Mr. Berko: I read an article in the New York Times about a company called Sirtis that has developed a proprietary drug that is supposed to be an anti-aging drug. I can't find the stock listed anywhere so it's probably a private company or owned by another drug company. If its private than I'll forget about it but if its public or part of a public company I'd like to know about it and maybe buy some shares. So what can you tell me about Sirtis and its drug? And do you think it's worth a gamble of a few thousand dollars? — N.M., Galesburg, Ill.

Dear N.M.: The ideal time to have purchased Sirtis (SIRT-$22.50) was after its initial public offering at $10 a share in May 2007. Dr. David Sinclair of Harvard Medical School founded SIRT. It is a biomedical company focusing on small molecule drugs to treat metabolic diseases and diseases associated with aging. But you're too late because last May a company called Fountain Acquisition Corp. (FAC) paid $22.50 for all the outstanding shares of SIRT. So SIRT became a wholly owned subsidiary of FAC, which is 100 percent owned by Glaxo SmithKline Beecham (GSK-$45), one of the largest pharmaceutical companies in the world. GSK is located across the pond in the United Kingdom.

According to my U.S. source at GSK, SIRT's research focuses on SRT501, "a proprietary formulation of resveratrol in Phase 1b clinical studies of patients with Type 2 diabetes, MELAS plus hematologic and solid tumor types." SIRT is also developing unique chemical compounds that are "new SRT activators" for metabolic, cardiovascular and neurological diseases. Big deal, Neal; there are hundreds of small biomedical outfits competing to develop new activators for these displeasing diseases.

What makes SIRT's research worth more than a peekaboo is its confirmation that resveratrol, an ingredient found in some — (notice I said "some" — red wines enhance longevity in rats by 30 percent.

(Who in their right mind would want to extend the longevity of a rat?)?

Medicinists, herbalists and alchemists and have been seeking the Fountain of Youth for thousands of years and science has long derided the concept of a life-extending elixir — till now. SIRT discovered that resveratrol activates a small molecule compound called sirtuin. Apparently sirtuin is a protein agent that activates our body's biological survival system by switching its resources from fertility to tissue/organ maintenance. The evolution of second preservation layer to tissue/organ maintenance extends life by diluting the degenerative diseases of aging and antagonizing cellular senescence, which reminds me of a ditty from Ogden Nash: "Senescence begins and middle age ends / The day your descendants outnumber your friends."

While it might be wonderful to have extended life and health, SIRT believes resveratrol/sirtuin is also a natural antagonist to Alzheimer's disease; so now you can enjoy your long life and remember it too. You can learn a lot more about this stuff in a recent inclusive peer-reviewed open resource from the PloS One or Public Library of Science.

While you can't own SIRT, you can own Glaxo SmithKline, inarguably one of the most prolific and highly respected pharmaceutical companies in the universe. The revenues, cash flow, earnings and dividend of which have more than tripled in the past two decades. This impressive pharmaceutical company issue sports a $2.07 dividend, which may be raised to $2.20 this year, that yields a smart 4.9 percent. Wall Street's 12-month target price for GSK is $52. If SIRT's research continues to demonstrate positive results this small molecule drug could become the blockbuster of all blockbusters. GSK is trading close to its four-year low and is the only way I know to participate in this exciting science. I believe there's little downside risk at this price and I, without a single compunction, recommend its purchase.

Please address your financial questions to Malcolm Berko, P.O. Box 1416, Boca Raton, FL 33429 or e-mail him at malber@comcast.net. To find out more about Malcolm Berko and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com.