New Leadership Makes Isolagen Attractive

| About: Isolagen, Inc. (ILE)

We think that Isolagen (ILE), an early-stage biotechnology company focused on the skincare market, offers investors an extraordinary opportunity to invest alongside a proven management team with significant experience in Isolagen’s core market. Though the company still faces substantial operating and financial risks, we believe that the odds and potential upside for the company’s stock price, assuming certain scenarios, is high enough to warrant buying shares in ILE at current prices or lower.

For a variety of reasons, Isolagen has had a few tough years, and shareholders of the company have suffered, with the stock declining to a low of $1 from over $8 in 2005. However, in June 2006 the company brought in Nicholas L. Teti to turnaround the company. Mr. Teti was the former CEO of Inamed Corp., a healthcare company that developed aesthetic products, and was sold to Allergan for $3.2 billion in 2005. Under Mr. Teti’s tenure, Inamed’s revenues nearly doubled to $440 million and its stock increased nearly fourfold to $84 per share. Notably, Mr. Teti has already brought in two other high-level executives from Inamed, to help restructure Isolagen.

It appears to us that the main problem for ILE in the past, had been that it did not have the right people in place with the proper experience in FDA Protocol Design, Manufacturing, and Marketing to really position this company for success, despite what appears to be an extraordinary platform for skincare therapy. The arrival of Mr. Teti and his team of proven executives, however, greatly increases the odds that Isolagen shareholders will finally see substantial returns on the company’s unique autologous cellular therapies for the treatment of wrinkles, burn scars, acne scars, and many additional potential applications.

We believe that the company under the new leadership of these highly-experienced executives will create a high-growth skincare company over the next three to five years with a combination of both FDA-approved procedures and high-end, scientifically-based skincare products. The business, if successful, would be highly profitable for the company and its shareholders. A quick look at the valuations afforded to companies in the aesthetic marketplace with FDA-approved products, is quite supportive of our investment case for Isolagen.

In sum, despite the fact that the company will likely face many more quarters of negative operating results, we think that the stock could move significantly higher over a longer-time frame as the company’s products move closer to FDA approval and the management team executes on several deals that could both increase the company’s revenue in the short-term, as well as, substantially increase the value of the company’s core technology platform over the long-term. We think that investors with a multi-year investment horizon would be wise to begin investigating Isolagen as a potential investment at this time.

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We own shares in Isolagen. This site may include market analysis. All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.

ILE 1-yr Chart

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