Main Story - Amicus Therapeutics (AMEX:FOLD) - pgs. 1-13
Macro Market Commentary - "Reports from AACR/NCI/EORTC " - pgs.14-21
BSR Coverage Update - pgs. 22-32
Biotech Sector Short Interest - pg. 33
BSR Model Portfolio Update - pgs. 34- 35

Welcome to the October 2007 issue of Biotech Monthly. In this issue we initiate coverage on Amicus Therapeutics (FOLD). Founded by John Crowley, the founder of Novazyme and the central character in the book "The Cure: How a Father raised $100 Million and Bucked the Medical Establishment in a Quest to Save His Children", this company takes an interesting approach to orphan genetic diseases.

Many orphan genetic diseases can be treated by replacing a missing enzyme. These enzymes are large, though, so they cannot cross the blood brain barrier. For some diseases, particularly those that have central nervous system side effects, this is a real problem. Amicus seeks to use small molecules to get around this problem. There are advantages and disadvantages to this approach, all of which we discuss in this issue of Biotech Monthly.

The initiation of coverage on Amicus brings the number of non-oncology orphan companies under coverage to four. We think there are distinct advantages to this segment of the biotech market.

In this issue of Biotech Monthly, we also update our coverage on:

Adolor (ADLR)
CombinatoRx (CRXX)
Dendreon (DNDN)
Hana Biosciences (HNAB)
Oncolytics Biotech (ONCY)
OXiGENE (OXGN)
Seattle Genetics (SGEN)
ZymoGenetics (ZGEN)