Listed Biotechnology Companies I-O

IAT - Iatia Ltd.
Between its listing in April 2002 and May 2004, the share price fell by over 90% indicating that the company had not gained sufficient interest and had not met expectations in the original prospectus. However following June 2004, there was a surprising and unjustified increase in price. With very little liquidity, a fall in price of 38% in 2005, a decline then stabilisation in 2006 (down 3% overall), a further decline in 2007 (down 12%) and again in 2008 (down 84%) and a market value of $2 million supported by capital injections as well as a search to find relevant markets, the company value indicates that survival of this company as a listed entity remains in question. Profitability was projected in 2007 but has not yet appeared and funds are short. (31/10/08)

ICV - Incitive Ltd.
Another biotechnology company listing without track record or pedigree. This company adds to the many companies in the Australian biotechnology sector that are insufficiently funded and directed at markets that are not in Australia. The focus on anti-inflammatory and immunosuppressant drugs is not new. Value of the company will be speculation driven for the first two years and prices rose 25% on launch but fell 33% overall in 2006, fell a further 41% in 2007 and 63% in 2008. Company value of $1 million is highly vulnerable not helped by association with the Opes Prime collapse. Lack of income and liquidity indicates a change of direction in the offing. (10/11/08)

IDT - Institute of Drug Technology Australia Ltd.
The company had a pretty average 2003 and early 2004 with consolidation being the theme. Share prices were lack lustre until July when they increased around 30% as a result of the announcement of deals with US companies, but gradually declined about 30% to the end of 2005 and a decline and recovery in 2006 associated with reduced revenue and profitability but with significant recovery in the last 6 months due to improved financials (up 14% in 2006). The company has a market value of $72 million which is reasonable given that it is one of the few biotech companies that is profitable. Recent financials indicate that revenues are growing slowly and profitability is up considerably. This together with the recent announcement of improved collaboration with Pfizer has resulted in a recovery in prices (up 21% in 2007 but down 32% in 2008 -around the average market decline for sector) with the potential for improvement when current market malaise has passed. (21/11/08)

IMU - Imugene Ltd.
Imugene tripled in price during 2003 and prices more or less remained at this level until early 2005. This was based on optimistic expectations which could not be met in the short term. There was a fall and partial recovery in prices during 2005 (down 30% overall) and a recovery in 2006 (up 38% overall) with stabilisation in early 2007 associated with positive results in avian influenza trials (down 41% in 2007). There was a further 45% fall in early 2008 with a recent jump associated with positive trial results (down 70% in 2008). The market cap of $6 million for the company is vulnerable and prices in FY2009 will depend on perceptions of current trial results. If recently announced results are fully supported, there may be some justification for elevated price levels and this has been supported by the recent licensing agreement with Merial and the commencement of milestone payments. However the clear 70% decline over the last year has been of concern. (2/11/08)

IPD - Impedimed Ltd.
Eight year old Queensland company listed in October 2007 before substantial revenue had been generated. Following listing, prices have increased then declined and on basis of fundamentals, it was hard to see prices being maintained until there are realistic projections for a substantial increase in revenue and profitability. Market cap of $61 million is high but as revenues are increasing, this value is gradually being supported. Down 11% in 2008 compared to market sector decline of 44%. (29/10/08)

KSX - Karmelsonix Ltd.
Since being renamed from Q-Vis then Salus Technologies, Karmelsonix has had a stuttering restart with the latest rebirth being the acquisition of KarmelSonix from Israel and PulmoSonix from Australia to develop respiratory products. Developments are at an early stage and the initial market cap of $8 million following the restructure and fund raising indicated the uncertain status of the company. However, in June/July 2007 prices jumped 502% without explanation but value is now back to $6 million (up 243% in 2007 but down 89% in 2008). Cost cutting has been introduced to stop bleed in difficult credit environment. (4/11/08)

LCT - Living Cell Technologies Ltd.
This company listed in September 2004 having previously been listed without note on the Newcastle Stock Exchange. In our view, the company was listing too soon and promising much. The company did well following listing with share prices up 100% and positive scientific reports were released. But it was hard to see this being maintained in 2005 and prices fell 53% in 2005 to par and remained at this level in 2006 with a small temporary rise in mid 2006 (down 10% in 2006). Preliminary favourable results from Phase II trials in Russia resulted in a 200% increase in September/October 2007 and prices rose 92% overall in 2007. There has been a fall and recovery in 2008 associated with new investment, increased expectations for commercialisation and approval for a clinical trial in New Zealand (down 62% in 2008). The current market cap of $33 million following fund raising is a little high as a result of speculation on clinical trials which are under way in Russia and about to commence in New Zealand. (21/11/08)

LFE - Life Therapeutics Ltd.
Previously Gradipore Limited. 2004 started with significant optimism associated with the acquisition of the plasma therapeutic business of US company Serologicals Corp., Serologicals Specialty Biologics Inc., which provided a foothold in the US market as well as substantial turnover. Following this, the company was rebadged as Life Therapeutics and management moved to the US. Since then, share prices were initially erratic indicating some uncertainties. There was no significant price movement in 2004, but prices increased significantly (127%) in the last 5 months of 2005 in association with acquisition of Pyramid Biological Corp and significant improvement in sales and sales projections. This continued temporarily in 2006 but there was some dampening of prices with fund raising and higher than projected losses. Significant developments in 2007 were the heads of agreement with a European company Kedrion for divestment of the Life Sera business into a joint venture for 5.5% of Kedrion. This was not well received by the market with a 77% share price fall and there was a significant change of management including departure of the Managing Director. Because of its limited liquidity, the company looked to sell some of its assets and received significant offers for its plasma collection centres but it appeared that time ran out. The market cap of the company is now $9 million (down 4% in 2006, down 79% in 2007 and down 78% in 2008). Trading in shares was suspended and prices dropped following the suspension period. Octapharma has taken over management of US operations with eventual aim of acquiring these and counter proposal from Kedrion was not accepted by the Board. This company is in an end play enlivened by a claim of damages made by Octapharma against LFE and an increasing shareholding by Bell with associated litigation which has now been settled. (9/11/08)

MBP - Metabolic Pharmaceuticals Ltd.
Share prices had been increasing steadily since listing in 1999. In 2004, they doubled up to November but following that were subject to some uncertainty associated with critical analyst reports on results of clinical trials and prices have fallen 75% since then (64% in 2005). There was a 79% lift in 2006 associated with speculation about clinical trials which were expected to provide results in early 2007 and a short term increase in early 2007. In our view the market cap of $245 million for the company was very high as a result of speculation and we expected subsequent falls in the share price in 2007 if the company did not deliver on expectations or sign arrangements with pharmaceutical companies. It was therefore not surprising that the stock fell 82% in February 2007 when trials of its lead compound for treating obesity were not successful. There was a further 50% fall in August with announcement that clinical trials on pain drug were discontinued. Current market cap of $9 million is less than the cash holding (prices down 95% in 2007 and down 29% in 2008).Company has halted work on oral peptide delivery, closed laboratories and is looking to outlicense osteoporosis drug in preparation for mergers and acquisitions. This culminated in July 2008 wth announcement to acquire PolyNovo Biomaterials with deal completed in October. (10/11/08)

MGZ - Medigard Ltd.
This company, specialising in retractable syringes and giving sets, listed in February 2004. Since then the share price has fallen 80% and the company is valued at $5 million with small cash reserves. The award of funds (twice) by the Queensland Government has been useful, but significant developments will need to occur for survival of this company. Prices stabilised in 2006, even in 2007 and down 30% in 2008. (16/11/08)

MSB - Mesoblast Ltd.
This company, drawing on stem cell technology from Adelaide and overseas, launched in mid December 2004 at a premium of 60% and although prices dropped to par, they have again risen, up 89% in 2005, up 55% in 2006 but down 30% in 2007 associated with market correction and further oscillations in 2008 (down 41%). It is still too early to assess the substance of this company but some questions have been asked about issues of ownership of associated companies. The company is also being strongly promoted even though commercialisation is some time away and current income is reliant on grants and interest income. In our view, the company is overvalued for this stage of the commercialisation cycle and significant work is required to achieve commercialisation to justify the current value of $90 million. (21/11/08)

MTY - Medical Therapies Ltd.
Yet another biotechnology company listing without a clear justification. Because of a lack of track record, prices were expected to fall in the first few months and they fell 20%. This was followed by speculation in the stock and prices rose, possibly associated a proposed acquisition of Nature Vet which did not proceed. Prices were up 3% overall in 2006 and fell 45% in 2007 and a further 44% in 2008. Market cap is now $5 million following speculation associated with announcement of first new drug product under development and appointment of new CEO/MD which was not supported by shareholders. The larder appeared to be rather bare putting prices under downward pressure so it was not surprising that the company acquired a patent portfolio from Japan to add blue sky potential. (1/11/08)

MVH - Medic Vision Ltd.
Previously called Premier Bionics. Since listing in 2002, share prices initially were indifferent, but increased to a peak in September 2003. Following that, prices drifted down and stabilised at around 34¢ with a few northwards sorties. However, in June 2005, prices fell 40% associated with fund raising to acquire Medic Vision as part of a diversification. There was a further drop and recovery in 2006 associated with fund raising and development of new markets (prices level in 2006) and a temporary rise of 20% in 2007 associated with fund raising but down 38% in 2007 overall. The company now has a value of $9 million (down 29% in 2008), and to increase this, it will need to increase revenues which appears to be occuring slowly. Some managerial and board reorganisation appears also to have helped. PulmoSonix has been offloaded into Karmelsonix providing some opportunities, but the company will need to broaden its portfolio to increase the current value. There has been a recent jump in value associated with a joint venture in India and new fund raising. (14/11/08)

NAL - Norwood Abbey Ltd.
Prices declined over 50% in 2004 possibly due to disappointment with company progress and fell a further 50% in the first half of 2005 with recovery of some of this loss up to October 2005 followed by stabilisation then an 88% fall in 2006 and a 150% recovery in 2007 (which was dissipated with fall of 36% in 2007 overall and a further fall of 78% in 2008). Company has market cap at $2 million. The Company expected a significant increase in revenue in late 2005 and profitability towards the end of that year neither of which eventuated. It was expected that if revenue did not increase significantly and losses were not reduced, there would be a significant downward correction in 2006 and this happened (down 88%). The acquisition of laser eye technology, the gradual shift of the operations of the company into the US market in preparation for NASDAQ listing, consolidation of shareholding and 30% US shareholding not redress this and the significant fall in prices in 2006 was cause for concern. To handle short term credit problems, the company sold significant parcels of shares in Norwood Immunology and now is looking to offload other assets with the latest being the spin out of needle free injection technology. This resulted in a rise in value in early 2007 but prices fell 36% in 2007 and a further 84% in 2008. (9/11/08)

NDL - Neurodiscovery Ltd.
Recently listed company which has acquired UK company NeuroSolutions. It is still too early to assess the substance of the company and for this reason, there is a question as to the justification for listing. However, shares more or less held their value initially (down 3% in 2006 then down 31% in 2007 associated with fund raising) with further fluctuations in 2008 (share price down 50% in 2008 : market cap $3 million). The company has had small losses in its first three years of operation and revenues are gradually increasing. Business is not likely to be significant until pharmaceutical products can be licensed. (1/11/08)

NLS - Narhex Life Sciences Ltd.
Five year old company listed early January 2005. Developing HIV protease inhibitor primarily for the Chinese market. Limited track record at this stage and primary issue will be rate of commercialisation in a difficult market. Prices fell 60% in 2005 and CEO has changed twice since listing. Price will remain under downward pressure until there is good clinical support for the company's lead product. However, announcement of prelimiinary clinical trials in 2006 and acquisition of assets of Swedish company producing inexpensive HIV diagnostics resulted in price improvements and prices rose temporarily by 27% but overall were even in 2006 and down 52% in 2007 with associated capital raising: market cap of $8 million. With change of second CEO prices fell a further 60% in 2008: market cap of $3 million with shares suspended because half yearly financials not completed and funds very low. There are signs that suspension will be lifted soon but company survival remains uncertain. (16/11/08)

NRT - Novogen Ltd.
Novogen showed a steady rise in share price from $1.25 in September 2002 to over $8 in December 2003. The company achieved significant sales and a successful entry into the US market. However, the value of the company has fallen by over 70% to around $73 million since then. In our view, this market cap is fair. Some levelling or fall in share prices was expected during 2006 unless the company could reduce its losses. This occurred (down 48% in 2006) and was accentuated by a downturn in the market and delays in milestone licence payments. However there was a temporary lift in 2007 associated with resolution of a patent infringement and an associated new licensing agreement. Pricing held up initially in 2008 despite the market fall but then fell although there was a temporary recovery associated with fund raising to support Marshall Edwards in the US (down 52% in 2007 and down 43% in 2008). (21/11/08)

NSP - NuSep Ltd.
New company created to specialise in the sales and distribution of bioseparations products originally sold through Life Therapeutics. This company has undertaken extensive developmental work but commercialisation is still at an early stage. Prices have fallen 86% since listing in May 2007 (down 65% in 2007 and down 72% in 2008). Company value at $2 million was precarious until the reverse takeover of NxGen Pharmaceuticals was announced. (11/11/08)

OBJ - OBJ Ltd.
Backdoor listing through a software company, OBJ acquired transdermal permeability enhancement technology in 2004. Several announcements of the experimental features of the technology have been made, but commercialisation of the technology will take time and so some speculation is likely. Shares increased 108% in 2005, declined 30% in 2006, declined 38% in 2007 and are down 86% in 2008: the company has a market cap of $3 million following recent fund raising which is vulnerable in our view. Technology appears some distance from commercialisation. (21/11/08)

OIL - Optiscan Imaging Ltd.
Since the announcement of its licensing deal with Pentax in 2000, share prices have languished and despite some rise associated with the overall market lift in August 2003, prices have not been strongly supported except for rises associated with regulatory approval in the US, the release of a new research product and the deal with Carl Zeiss. The company is currently valued at $7 million, which is fair with stability in 2005, a 28% increase in 2006, a 33% decrease in 2007 and a further decline of 81% in 2008. To maintain value, the company will need to become profitable and will need to increase revenues in FY2009. Recent declines have been due to soft forward sales projections by Pentax as well as broader issues in the market and this is being reflected in decreasing revenues. There was a rapid drop in price in October 2008 with need for fund raising which will be difficult in current market. (11/11/08)

| A | B | C | D-H | I-O | P | Q-Z |

Last revised Fri, 21 Nov 2008
Copyright© 2005 Valutech Pty. Ltd. (ABN 71 058 332 666) All rights reserved