Many biotech companies choose their drug projects based on unmet medical needs, making the potential market largely a question of patient population and market penetration. By contrast, Cellegy Pharmaceuticals Inc. is starting a Phase I trial with its Tostrelle transdermal testosterone gel for women with testosterone deficiency, believing that an attractive and easy-to-use product made specifically for women can build a market where only a few women actually seek treatment.

According to CFO Richard Juelis, testosterone "is available primarily for men. It is marketed for men." The