EXHIBIT 99.1
                                  RISK FACTORS
You should carefully consider the risks, uncertainties and other factors
described below because they could materially affect our business, financial
condition and/or operating results and could negatively impact the market price
of our common stock. Also, you should be aware that the risks and uncertainties
described below are not the only ones facing us. Additional risks and
uncertainties that we do not yet know of, or that we currently think are
immaterial, may also impair our business operations. You should also refer to
the other information contained in and incorporated by reference into this
quarterly report on Form 10-QSB including our financial statements and the
related notes.

RISKS RELATED TO OUR BUSINESS AND OUR INDUSTRY

WE HAVE HAD SIGNIFICANT LOSSES AND ANTICIPATE FUTURE LOSSES; IF ADDITIONAL
FUNDING CANNOT BE OBTAINED, WE MAY REDUCE OR DISCONTINUE OUR PRODUCT DEVELOPMENT
AND COMMERCIALIZATION EFFORTS AND WE MAY BE UNABLE TO CONTINUE OUR OPERATIONS.

We are a development stage company that has experienced significant losses since
inception and have a significant accumulated deficit. We expect to incur
additional operating losses in the future and expect our cumulative losses to
increase. All of our products are currently in development, preclinical studies
or clinical trials, and we have not generated any revenues from sales or
licensing of these products. Through March 31, 2003, we have expended
approximately $1.7 million developing our current product candidates and for our
clinical trials, and we currently have commitments to spend approximately $1.1
million over the next two years in connection with our current clinical trials.
Additional funds will need to be spent on development of our oral delivery
systems, biodefense vaccine products and licenses. Unless and until we are able
to generate licensing revenue from orBec(R), our leading product candidate, or
another one of our product candidates, we will require additional funding to
meet these commitments, sustain our research and development efforts, provide
for future clinical trials, and continue our operations. We may not be able to
obtain additional required funding on terms satisfactory to our requirements, if
at all. If we are unable to raise additional funds when necessary, we may have
to reduce or discontinue development, commercialization or clinical testing of
some or all of our product candidates or take other cost-cutting steps that
could adversely affect our ability to achieve our business objectives. If
additional funds are raised by our issuing equity securities, stockholders may
experience dilution of their ownership interests, and the newly issued
securities may have rights superior to those of the common stock. If additional
funds are raised by our issuing debt, we may be subject to limitations on our
operations.

IF WE ARE UNSUCCESSFUL IN DEVELOPING OUR PRODUCTS, OUR ABILITY TO
GENERATE REVENUES WILL BE SIGNIFICANTLY IMPAIRED.

To be profitable, our organization must, along with corporate partners and
collaborators, successfully research, develop and commercialize our technologies
or product candidates. Our current product candidates are in various stages of
clinical and pre-clinical development and will require significant further
funding, research, development, preclinical and/or clinical testing, regulatory
approval and commercialization testing, and are subject to the risks of failure
inherent in the development of products based on innovative or novel
technologies. Specifically, each of the following is possible with respect to
orBec(R) or any of our other product candidates:

- - that we will not be able to maintain our current research and development
schedules;

- - that we will encounter problems in clinical trials; or

- - that the technology or product will be found to be ineffective or unsafe.

If any of the risks set forth above occurs, or if we are unable to obtain the
necessary regulatory approvals as discussed below, we may not be able to
successfully develop our technologies and product candidates and our business
will be seriously harmed. Furthermore, for reasons including those set forth
below, we may be unable to commercialize or receive royalties from the sale of
orBec(R) or any other technology we develop, even if it is shown to be
effective, if:

- - it is uneconomical or the market for the product does not develop or
diminishes;

- - we are not able to enter into arrangements or collaborations to manufacture
and/or market the product;

- - the product is not eligible for third-party reimbursement from government or
private insurers;

- - others hold proprietary rights that preclude us from commercializing the
product;

- - others have brought to market similar or superior products; or

- - the product has undesirable or unintended side effects that prevent or limit
its commercial use.

OUR BUSINESS IS SUBJECT TO EXTENSIVE GOVERNMENTAL REGULATION, WHICH CAN BE
COSTLY, TIME CONSUMING AND SUBJECT US TO UNANTICIPATED DELAYS.

All of our product offerings, as well as the processes and facilities by which
they are manufactured, are subject to very stringent United States, federal,
foreign, state and local government laws and regulations, including the Federal
Food, Drug and Cosmetic Act, the Environmental Protection Act, the Occupational
Safety and Health Act, and state and local counterparts to these acts. These
laws and regulations may be amended, additional




laws and regulations may be enacted, and the policies of the FDA and other
regulatory agencies may change.

The regulatory process applicable to our products requires pre-clinical and
clinical testing of any product to establish its safety and efficacy. This
testing can take many years and require the expenditure of substantial capital
and other resources. For example, clinical trials of orBec(R) began in 2001 and
are expected to continue for at least one more year. We may be unable to obtain,
or we may experience difficulties and delays in obtaining, necessary domestic
and foreign governmental clearances and approvals to market a product. Also,
even if regulatory approval of a product is granted, that approval may entail
limitations on the indicated uses for which the product may be marketed. We do
not expect to complete clinical testing of any of our product candidates within
the next 6 months.

Following any regulatory approval, a marketed product and its manufacturer are
subject to continual regulatory review. Later discovery of problems with a
product or manufacturer may result in restrictions on such product or
manufacturer. These restrictions may include withdrawal of the marketing
approval for the product. Furthermore, the advertising, promotion and export of
a product are subject to extensive regulation by governmental authorities in the
United States and other countries. If we fail to comply with applicable
regulatory requirements, we may be subject to fines, suspension or withdrawal of
regulatory approvals, product recalls, seizure of products, operating
restrictions and/or criminal prosecution.

WE WILL BE DEPENDENT ON GOVERNMENT FUNDING, WHICH IS INHERENTLY UNCERTAIN, FOR
THE SUCCESS OF OUR BIODEFENSE OPERATIONS.

We are subject to risks specifically associated with operating in the biodefense
industry, which is a new and unproven business area. We do not anticipate that a
significant commercial market will develop for our biodefense products. Because
we anticipate that the principal potential purchasers of our products, as well
as potential sources of research and development funds, will be the U.S.
government and governmental agencies, the success of our biodefense division
will be dependent in large part upon government spending decisions. The funding
of government programs is dependent on budgetary limitations, congressional
appropriations and administrative allotment of funds, all of which are
inherently uncertain and may be affected by changes in U.S. government policies
resulting from various political and military developments.

OUR PRODUCTS, IF APPROVED, MAY NOT BE COMMERCIALLY VIABLE DUE TO HEALTH CARE
CHANGES AND THIRD PARTY REIMBURSEMENT LIMITATIONS.

Recent initiatives to reduce the federal deficit and to change health care
delivery are increasing cost-containment efforts. We anticipate that Congress,
state legislatures and the private sector will continue to review and assess
alternative benefits, controls on health care spending through limitations on
the growth of private health insurance premiums and Medicare and Medicaid
spending, price controls on pharmaceuticals, and

other fundamental changes to the health care delivery system. Any changes of
this type could negatively impact the commercial viability of our products, if
approved. Our ability to successfully commercialize our product candidates, if
they are approved, will depend in part on the extent to which appropriate
reimbursement codes and authorized cost reimbursement levels of these products
and related treatment are obtained from governmental authorities, private health
insurers and other organizations, such as health maintenance organizations. In
the absence of national Medicare coverage determination, local contractors that
administer the Medicare program may make their own coverage decisions. Any of
our product candidates, if approved and when commercially available, may not be
included within the then current Medicare coverage determination or the coverage
determination of state Medicaid programs, private insurance companies or other
health care providers. In addition, third-party payers are increasingly
challenging the necessity and prices charged for medical products, treatments
and services.

WE MAY NOT BE ABLE TO RETAIN RIGHTS LICENSED TO US BY THIRD PARTIES TO
COMMERCIALIZE KEY PRODUCTS OR TO DEVELOP THE THIRD PARTY RELATIONSHIPS WE, NEED
TO DEVELOP, MANUFACTURE AND MARKET OUR PRODUCTS.

We currently rely on license agreements from Southern Research Institute, the
University of Alabama Research Foundation, Thomas Jefferson University and
George B. McDonald for the rights to commercialize key product candidates. These
agreements require that we use our best efforts to commercialize at least two
products in the next 5 years. Our failure to meet the requirement would allow
the licensors to terminate the licenses, whereas our meeting this milestone
would trigger payment obligations on our part. We may not be able to retain the
rights granted under these agreements or negotiate additional agreements on
reasonable terms, or at all. We have also entered into letters of intent or
option agreements with the Ministry of Defense of the United Kingdom, the
University of Texas Southwestern Medical Center and the University of Texas
Medical Branch at Galveston, under which we plan to license issued patent and
pending patent applications for technologies relating to botulinum toxin,
intranasal anthrax and ricin vaccines. Although these letters of intent and
option agreements provide for defined business terms, we may not be able to come
to definitive agreements with the institutions and, as a result, may not obtain
critical intellectual property rights on which we expect to rely.

Furthermore, we currently have very limited product development capabilities and
no manufacturing, marketing or sales capabilities. For us to research, develop
and test our product candidates, we need to contract with outside researches, in
most cases with or through those parties that did the original research and from
whom we have licensed the technologies. If products are successfully developed
and approved for commercialization, then we will need to enter into
collaboration and other agreements with third parties to manufacture and market
our products. We may not be able to induce the third parties to enter into these
agreements, and, even if we are able to do so, the terms of these agreements may
not be favorable to us. Our inability to enter into these agreements could delay
or preclude the development, manufacture and/or marketing of some of our product
candidates or could significantly increase the costs of doing so. In the future,
we may

grant to our development partners rights to license and commercialize
pharmaceutical and related products developed under the agreements with them,
and these rights might limit our flexibility in considering alternatives for the
commercialization of these products. Furthermore, third-party manufacturers or
suppliers may not be able to meet our needs with respect to timing, quantity and
quality for the products.

Additionally, if we do not enter into relationships with third parties for the
marketing of our products, if and when they are approved and ready for
commercialization, we would have to build our own sales force. Such a marketing
and sales force would be particularly relevant to our biotherapeutic products,
which we intend to market to a broad customer base. Development of an effective
sales force would require significant financial resources, time and expertise.
We may not be able to obtain the financing necessary to establish a sales force
in a timely or cost effective manner, if at all, and any sales force we are able
to establish may not be capable of generating demand for our product candidates,
if they are approved.

WE MAY SUFFER PRODUCT AND OTHER LIABILITY CLAIMS; WE MAINTAIN ONLY LIMITED
PRODUCT LIABILITY INSURANCE, WHICH MAY NOT BE SUFFICIENT.

The clinical testing, manufacture and sale of our products involves an inherent
risk that human subjects in clinical testing or consumers of our products may
suffer serious bodily injury or death due to side effects, allergic reactions or
other unintended negative reactions to our products. As a result, product and
other liability claims may be brought against us. We currently have clinical
trial and product liability insurance with limits of liability of $5 million,
which may not be sufficient to cover our potential liabilities. Because
liability insurance is expensive and difficult to obtain, we may not be able to
maintain existing insurance or obtain additional liability insurance on
acceptable terms or with adequate coverage against potential liabilities.
Furthermore, if any claims are brought against us, even if we are fully covered
by insurance, we may suffer harm such as adverse publicity.

WE MAY NOT BE ABLE TO COMPETE SUCCESSFULLY WITH OUR COMPETITORS IN THE
BIOTECHNOLOGY INDUSTRY.

The biotechnology industry is intensely competitive, subject to rapid change and
sensitive to new product introductions or enhancements. Virtually all of our
existing competitors have greater financial resources, larger technical staffs,
and larger research budgets than we have, as well as greater experience in
developing products and conducting clinical trials. Our competition is
particularly intense in the gastroenterology and transplant areas and is also
intense in the therapeutic area of inflammatory bowel disease. We face
intense competition in the area of biodefense from various public and private
companies and universities, as well as governmental agencies, such as the U.S.
Army, which may have their own proprietary technologies that may directly
compete with our technologies. In addition, there may be other companies that
are currently developing competitive technologies and products or that may in
the future develop technologies and products



that are comparable or superior to our technologies and products. We may not be
able to compete successfully with our existing and future competitors.

WE MAY BE UNABLE TO COMMERCIALIZE OUR PRODUCTS IF WE ARE UNABLE TO PROTECT OUR
PROPRIETARY RIGHTS AND WE MAY BE LIABLE FOR SIGNIFICANT COSTS AND DAMAGES IF WE
FACE A CLAIM OF INTELLECTUAL PROPERTY INFRINGEMENT BY A THIRD PARTY.

Our success depends in part on our ability to obtain and maintain patents,
protect trade secrets and operate without infringing upon the proprietary rights
of others. For example, we currently hold the rights to a patent for our
Microvax(TM) technology in the field of mucosally and orally administered
vaccines. In the absence of patent and trade secret protection, competitors may
adversely affect our business by independently developing and marketing
substantially equivalent or superior products and technology, possibly at lower
prices. We could also incur substantial costs in litigation and suffer diversion
of attention of technical and management personnel if we are required to defend
ourselves in intellectual property infringement suits brought by third parties,
with or without merit, or if we are required to initiate litigation against
others to protect or assert our intellectual property rights. Moreover, any such
litigation may not be resolved in our favor.

Although we have filed various patent applications covering the uses of our
product candidates, we may not be issued patents from the patent applications
already filed or from applications we may file in the future. Moreover, the
patent position of companies in the pharmaceutical industry generally involves
complex legal and factual questions, and recently has been the subject of much
litigation. Any patents we have obtained, or may obtain in the future, may be
challenged, invalidated or circumvented. To date, no consistent policy has been
developed in the United States Patent and Trademark Office regarding the breadth
of claims allowed in biotechnology patents.

In addition, because patent applications in the United States are maintained in
secrecy until patents issue, and because publication of discoveries in the
scientific or patent literature often lags behind actual discoveries, we cannot
be certain that we and our licensors are the first creators of inventions
covered by any licensed patent applications or patents or that we or they are
the first to file. The Patent and Trademark Office may commence interference
proceedings involving patents or patent applications, in which the question of
first inventorship is contested. Accordingly, the patents owned or licensed to
us may not be valid or may not afford us protection against competitors with
similar technology, and the patent applications licensed to us may not result in
the issuance of patents.

It is also possible that our patented technologies may infringe on patents or
other rights owned by others, licenses to which may not be available to us. We
are aware of at least one issued U.S. patent assigned to the U.S. Government
relating to one component of one of our vaccine candidates that we may be
required to license in order to commercialize those vaccine candidates. We may
not be successful in our efforts to obtain a license under such patent on terms
favorable to us, if at all. We may have to alter our products or



processes, pay licensing fees or cease activities altogether because of patent
rights of third parties.

In addition to the products for which we have patents or have filed patent
applications, we rely upon unpatented proprietary technology and may not be able
to meaningfully protect our rights with regard to that unpatented proprietary
technology. Furthermore, to the extent that consultants, key employees or other
third parties apply technological information developed by them or by others to
any of our proposed projects, disputes may arise as to the proprietary rights to
this information, which may not be resolved in our favor.


OUR BUSINESS COULD BE HARMED IF WE FAIL TO RETAIN OUR CURRENT PERSONNEL OR IF
THEY ARE UNABLE TO EFFECTIVELY RUN OUR BUSINESS.


We have only five employees: Dr. Ralph Ellison, our Chief Executive Officer and
President; Steve Kanzer, our Vice Chairman; William Milling, our Controller,
Treasurer and Corporate Secretary; Robert Brey, our Vice President of Research
and Development; and Robin Simuncek, our Clinical Project Manager and an
Administrative Assistant. Mr. Ellison was hired in March 2003, following the
resignation of David M. Kent, our former Chief Executive Officer for personal
reasons; Mr. Kanzer became our Vice Chairman in January 2003; Mr. Milling was
hired in September 2002; and Mr. Brey was hired in December 2002. In addition,
Alexander Haig, our non-employee Chairman of the Board was appointed in January
2003. We depend upon the five employees to manage the day-to-day activities of
our business. Because we have such limited personnel, the loss of any of them,
even though they have very limited experience in managing or operating our
business, or our inability to attract and retain other qualified employees in a
timely manner, would likely have a negative impact on our operations.
Furthermore, because of their inexperience in operating our business, there is
significant uncertainty as to how our management team will perform. Our
management team may need to devote a significant amount of time to learning
about our business and its markets, which could limit their effectiveness in
managing our business for a period of time. We will not be successful if this
new management team cannot effectively manage and operate our business.

WE HAVE RELATIONSHIPS THAT PRESENT CONFLICTS OF INTEREST.

Our Vice Chairman of the Board of Directors, Steve H. Kanzer, is Chairman and
Chief Executive Officer of Accredited Ventures, Inc., which in the regular
course of its business, identifies, evaluates and pursues investment
opportunities in biomedical and pharmaceutical products, technologies and
companies. However, Accredited is under no obligation to make any additional
products or technologies available to us. Therefore, we may lose to Accredited
opportunities of which Mr. Kanzer is aware that would be beneficial to our
business. In addition, our officers and directors and officers or directors
appointed in the future may from time to time serve as officers, directors or
consultants of other biopharmaceutical or biotechnology companies and those
companies may have interests that conflict with our interests. As a result of
our recent management changes,

which highlighted some of the actual and potential conflicts, we have not yet
developed policies to address the conflicts of interest, but we plan to do so in
the near future.

RISKS RELATED TO AN INVESTMENT IN OUR COMMON STOCK

OUR STOCK PRICE IS HIGHLY VOLATILE AND OUR STOCK IS THINLY TRADED

The market price of our common stock, like that of many other development stage
public pharmaceutical and biotechnology companies, has been highly volatile and
may continue to be so in the future due to a wide variety of factors, which
include, actual or anticipated fluctuations in our results of operations,
announcements of innovations by us or our competitors, additions or departures
of key personnel or general market conditions. For example, on January 7, 2003,
when ricin was discovered in an apartment in London and we announced that we had
retained Mr. Haig as our Chairman of the Board, our stock price went from $0.58
per share to $1.05 per share in one day and has fluctuated between $0.80 per
share and $1.57 per share from that date through April 30, 2003. From July 1,
2000 through April 30, 2003, the per share price of our common stock ranged from
a high of $9.44 per share to a low of $0.11 per share. The fluctuation in the
price of our common stock has sometimes been unrelated or disproportionate to
our operating performance.

Since it commenced trading on the American Stock Exchange on August 6, 1998, our
common stock has been thinly traded. The average trading volume for our common
stock averaged approximately 36,907 shares per day from January 1, 2001 to April
30, 2003. The relatively illiquid market for our shares may have an adverse
effect on the market price for our shares and on stockholders' ability to sell
our common stock at the prevailing market price. A more active trading market
for our common stock may not develop.

OUR STOCK MAY NOT REMAIN LISTED ON THE AMERICAN STOCK EXCHANGE.

Because we continue to incur losses from continuing operations in fiscal 2003,
the stockholders' equity standard applicable to us of AMEX's continued listing
requirements will increase from $4 million to $6 million for fiscal years ending
2003 and beyond. Moreover, our net equity of $3.3 million as of March 31, 2003
does not satisfy the $4 million minimum stockholders' equity requirement
applicable to calendar quarters ending during 2003. If, for this reason or for
any other reason, our stock were to be delisted from the American Stock
Exchange, we may not be able to list our common stock on another national
exchange or market. If our common stock is not listed on a national exchange or
market, the trading market for our common stock may be even more illiquid than
it is already. Upon any such delisting, our common stock would become subject to
the penny stock rules of the SEC, which generally are applicable to equity
securities with a price of less than $5.00 per share, other than securities
registered on certain national securities exchanges or quoted on the Nasdaq
system, provided that current price and volume information with respect to
transactions in such securities is provided by the exchange or



system. The penny stock rules require a broker-dealer, before a transaction in a
penny stock not otherwise exempt from the rules, to deliver a standardized risk
disclosure document prepared by the SEC that provides information about penny
stocks and the nature and level of risks in the penny stock market. The
broker-dealer also must provide the customer with bid and ask quotations for the
penny stock, the compensation of the broker-dealer and its salesperson in the
transaction and monthly account statements showing the market value of each
penny stock held in the customer's account. In addition, the penny stock rules
require that, before a transaction in a penny stock that is not otherwise exempt
from such rules, the broker-dealer must make a special written determination
that the penny stock is a suitable investment for the purchaser and receive the
purchaser's written agreement to the transaction. As a result of these
requirements, if our common stock were to become subject to the penny stock
rules, it is likely that the price of our common stock would decline and that
our stockholders would find it more difficult to sell their shares.

INVESTORS MAY SUFFER SUBSTANTIAL DILUTION.

We have a number of agreements or obligations that may result in dilution to
investors. These include:

- - warrants to purchase a total of approximate 5.2 million shares of our common
stock at a current weighted average exercise price of approximately $2.50.

- - conversion rights and dividend rights of preferred stock, consisting of
119,428 shares of Series B preferred stock ($8.0 million original liquidation
value) bearing an 8% cumulative payment-in-kind dividend and convertible at the
liquidation value into common stock at $7.38 per share;

- - anti-dilution rights under the above warrants and preferred stock, which can
permit purchase of additional shares and/or lower exercise or conversion prices
under certain circumstances; and

- - options to purchase approximately 6,078,000 shares of common stock at a
current weighted average exercise price of approximately $0.95.

To the extent that anti-dilution rights are triggered, or warrants, options or
conversion rights are exercised, our stockholders will experience substantial
dilution and our stock price may decrease.