Listed Biotechnology Companies P

PAA - PharmAust Ltd.
Relisting of Echo Technologies in October 2004 with emphasis on refurbished pharmaceutical facilities in Western Australia and drug discovery through subsidiaries Epichem and Mimotopes (now sold to Commonwealth Biotechnologies) as well as a 15% position in Advanced Molecular Technologies and 40% of Commonwealth Biotechnologies. Prices were relatively stable following relisting, but there has been a noticeable decline since April 2006 with a recovery in November (down 31% in 2006). The value of $5 million for the company in 2008 following fund raising indicated vulnerability of the company. A proposal for merger with Advanced Health Group was a development depressing prices and when this did not proceed, the share price rebounded but fell 65% in 2007 due to questions about the Board and viability of the company with some shareholder revolt. This appears to have been resolved but prices have been erratic (down 48% in 2008) culminating in the manufacturing subsidiary going into voluntary administration. Prices rose 100% in 2009 to a market cap of $11 million without explanation although possibly related to sale of property to remove debt. There has been an11% decline to $10 million in 2010. (9/3/10)

PAB - Patrys Ltd.
Recently established Australian company drawing together US and German technology to develop treatments for cancer and other diseases. Collaborations in place with Takeda, Astra Zeneca and Debiopharm. Company listed in July 2007 and prices rose 50% immediately but are now 80% below the prospectus price. Market cap of $28 million (down 79% in 2008 but up 25% in 2009 with a jump due to speculation over coming clinical trials). There has been a 20% increase in 2010 resulting from R&D agreement with CSL. (11/3/10)

PBP - Probiotec Limited
Ten year old company which first started with the processing of animal byproducts in the dairy industry and through acquisitions of manufacturing facilities of Pharmaction and Milton has grown into a manufacturer and distributor of over the counter (OTC) pharmaceutical products. After raising $17 million in an IPO, company began trading on the ASX in mid November 2006 and by the end of the year prices had risen 14% with a fall then recovery in 2007 associated with legal proceedings (up 19%). There was a further fall, recovery and decline in 2008 associated with market downturn, a favourable outcome to legal proceedings and a recent claim on a subsidiary by Pfizer and an unexplained fall was of concern (up 10% in 2008 with improving financials and up 66% in 2009 but down 29% in 2010). Market cap of company is $93 million and is trading in line with fundamentals. Development of blue sky may also add value. (5/3/10)

PBT - Prana Biotechnology Ltd.
Prana has suffered from being over promoted too soon and has endured the consequences of lack of stock market faith. The shares languished in 2003 and early 2004. However, in April 2004, as a result of promotion in the US market, the share price doubled but by July had returned to the mid 50¢ level where it stayed for the remainder of 2004 followed by a severe 70% decline in 2005 associated with problems with preparations of first lead compound due for clinical trials. At the end of 2005, there was a temporary 50% jump associated with early positive results with the second lead compound and a speculative run on the stock in July 2006 which the company then had to hose down and a further run in September which continued through into 2007. Shares rose 100% in 2006 but stabilised a little in 2007 and then declined followed by a 100% jump in December 2007 (up 29% in 2007). This was followed by a further temporary 27% surge in 2008 associated with release of positive clinical trial results (down 38% in 2008) and a significant 52% fall in 2009. The company's market cap is currently a high $37 million, following substantial funds injections and with current cash reserves of $8 million. The situation remains uncertain, following the departure of the US-based CEO and some US investors. (9/3/10)

PCC - Probiomics Ltd.
When Probiomics, then VRI Biomedical, listed eight years ago, there was some optimism about the future together with a few carry over projects from Cortecs. After a year, when this optimism was not matched with commercial income, support for the shares disappeared and even a major change in the Board and management of the company did not halt the slide. Shares fell in 2004 but stabilised at the end of 2004 with a further 58% fall in 2005 and 27% in 2006. Continuing shareholder dissatisfaction and lack of liquidity led to Board and Management changes as well as closure of Newcastle operations (diagnostics), reduction in UNSW activities and increased focus on probiotics with an associated company name change. The company appeared to be at a very sensitive stage: it staged a recovery in mid 2006 associated with fund raising (down 10% overall in 2006) but there was a 33% fall in 2007 associated with reduced sales and a further 33% fall in 2008 with a recovery associated with a proposed fund raising then a 50% fall with announcement of proposed acquisition of Minomic International for $12 million which did not proceed (down 88% in 2008). It now has a market cap of $4 million with a 340% increase in 2009 and a fall of 36% in 2010 following positive trial results resulting in a manufacturing and marketing agreement with Chr. Hansen of Denmark and indications of profitability in the last half year. We consider this speculation overpriced the shares which will eventually fall back to earth. Departure of CEO indicates company is preparing for a change in direction. (26/2/10)

PGL - Progen Pharmaceuticals Ltd.
In 2003 Progen gained market attention with a share price increase from 50¢ in June to over $2 in September. This was followed with a more than doubling of the share price from the beginning of 2004 to October as a result of some speculation relating to clinical trials and eventual licensing. When licensing did not eventuate, shares declined in price, down 50% (39% in 2005). In 2006, prices gradually rose and with the announcement of positive Phase II trail results in mid-December 2006, prices jumped 100% with some subsequent relaxation associated with fund raising ( up 108% in 2006). Announcement of changed royalty arrangements with Medigen resulted in an increase in 2007 which was brought back to earth with a substantial capital raising which has not been without problems including recent less than favourable trial results: down 57% in 2007. There was a further decline of 53% in the first half of 2008 and an acquisition of CellGate to expand product portfolio. There was a further 50% fall in price with announcement of discontinuation of work on anticancer compound PI-88. Market cap was $47 million which was substantially less than the cash holdings of the company of $75 million. Prices down 70% in 2008. New company strategy is to return some capital to shareholders, review pipeline and look for mergers and acquisitions and this culminated in an agreement to merge with Avexa (ASX:AVX) in late December. There was a temporary rise in early 2009 but confusion was caused by a counter proposal by some shareholders for a merger with Cytopia. Eventual shareholder indications against the merger resulted in Progen withdrawing from the merger talks with some rebound in price and a spill in directors. Prices down 29% in 2009 with market cap at $33 million compared to cash holdings of $28 million. Further shareholder dissatisfaction resulted in litigation which was resolved in November with board changes and departure of CEO. There has been no significant change in 2010. (24/2/10)

(PLI - Peplin Inc.)
Successor entity to Peplin Ltd which became wholly owned subsidiary of Peplin Inc. and therefore redomiciled to US. In 2004, prices meandered until October when Allergan indicated that at least for the short term, they would not be continuing to develop one of Peplin's key products. This resulted in a 35% drop in prices and a subsequent drift down until positive trial results caused a temporary 20% jump in early 2005 followed by a further drift down with the rest of the market and a recent 70% jump associated with positive clinical trial results and a more gradual 40% rise since September 2006 culminating in an unexplained jump in July 2007 probably associated with the move into the US market. Prices up 30% in 2006 and 6% in 2007. Name changed to Peplin Inc. from 2008 and prices fell 63% with a recent increase associated with change of Managing Director and further fund raising. There has been a further 160% rise in 2009. The company has a market cap of $177 million following release of positive Phase IIb clinical trial data. The approach by LEO Pharma to acquire the company for $348 million at the beginning of September was successfully concluded in November with delisting from the ASX. (29/11/09)

PLT - Polartechnics Ltd.
This company has had a history of over promising and as a result, has suffered the consequences of a lack of price support at various stages in its life. Revenues are still at an early stage but in our view the market cap of $6 million at end of June 2006 was a little low. Share prices fell 50% in 2004, partly associated with shareholder disappointment with the rate of commercialisation of the company's technology. Prices fell a further 75% in 2005 contributing to Board upheaval. There was a further large decline in the first half of 2006 with a sell off of a large shareholding and replacement of the Managing Director. Company announced a new commercial strategy in early FY2007 and raised further funds with more than a doubling of price but it is not clear how this will offer a future for the company: recent deals on China have led to considerable speculative lifts in prices but revenues are not meeting management projections. Shares rose 138% in late 2006 and a further 52% in 2007 to company market cap of $65 million following fund raising. The company projected substantially increased revenues in FY2008 which have not been met and achievement of the projections will determine future prices. Prices have fallen 54% in 2008 and 59% in 2009 with market cap at $19 million. There had been a doubling in price associated with deal in late 2008 with Australian Healthscope which provides major footprint in the Australian market but lack of clear commercial results weighed down the share price. There was a recent temporary rise associated with announcement of merger talks which culminated in announcement of proposed merger with Fermiscan which fell through at the end of June 2009 when experts report found merger proposal not fair or reasonable for Fermiscan shareholders. Company placed in voluntary administration at end of July 2009. Meeting of creditors in February 2010 resolved to liquidate company. (12/2/10)

PNO - PharmaNet Group Ltd.
Shares in this company were subject to significant speculation in mid July 2004 on the basis of very poorly supported claims. No information on the claimed technical developments was provided and the reviewers of the technology were little known, but this aspect is now being addressed by the company. The substance associated with this company must be treated with circumspection until independent assessments can be made. As expected, prices fell following the surge and were expected to continue but there was a minor recovery between October and December 2004. Prices jumped temporarily in November 2005 with proposed backdoor listing in US which did not proceed but overall fell 27% in 2005 and 53% in 2006. Fund raising and a new company direction lifted prices temporarily again in 2007 (down 50% in 2007, down 73% in 2008 and even in 2009 until April when there was an unexplained 100% increase in price and a further increase in November: up 133% overall in 2009). There has been a further unexplained 71% rise in 2010. The company has an $9 million market cap indicating its vulnerability with little evidence to support the increases over the last year or so. (4/3/10)

POH - Phosphagenics Ltd.
This company, previously called Vital Capital, changed from a pooled development fund to a nutraceutical and pharmaceutical company. It has developed two Vitamin E supplement formulations which are being marketed in the US and is developing drug delivery technology. Share prices increased 50% in October-November 2004 due to international fund raising and increasing international interest. Following acquisition of remainder of Vital Health Sciences with an allotment of almost 300 million shares and substantial fund raising, the current value of the company is $62 million which is high relative to fundamentals but credibility will only come when there is a substantial increase in revenues. There was an increase of 39% in prices in 2006 possibly associated with expectations related to clinical trials and the deal with Nestlé. Prices have declined 29% in 2007 and 68% in 2008 but there was a doubling of price early in 2009 associated with positive trial results, an evaluation agreement with CSL and launch of cosmetic products in the US but this has tapered of and was down 11% at the end of 2009. There has been a lift of 24% in 2010 with launch of Australian cosmetic line. (18/2/10)

PRR - Prima Biomed Ltd.
Prima has never excited the market, possibly because it set up a number of subsidiary companies originating from the same research institute and all of the technologies will take some time to reach market. Over the initial years, share prices have trended steadily downwards and fell 60% in 2004. There was a 30% increase in October/November 2004 associated with Board changes, but this was wiped out at the end of the year when prices fell. Prices fell 29% in 2005 and 46% in 2006 but there was a rise in early 2007 due to favourable results from an early clinical trial on CVAC technology (down 58% in 2007 due to speculation over director associated share sell off). The market cap of $3 million in 2007 followed fund raising and the company was repositioning itself for a new business or change of direction with departure of Executive Chairman. Prices down 76% in 2008. There has been an unexpectedly large recovery of 2900% in 2009 to a market cap of $92 million with some refinancing, access to a line of credit, commencement of clinical trials, FDA approval for clinical trials and unrealistic speculation associated with an unrelated vaccine development overseas. There has been a further 7% increase to $104 million in 2010. (19/2/10)

PVA - Psivida Corp.
Previously Psivida Ltd an Australian company was reincorporated in the US in June 2008. Company has had a patchy performance since its initial establishment. Company had market cap of $201 million in June 2006 but there has been a significant fall in value since then. Since reincorporation, shares fell 65% in 2008, rose 223% in 2009 and have fallen 8% in 2010: company has market cap of $72 million following announcement of positive clinical trials. (10/3/10)

PXS - Pharmaxis Ltd.
Company listed in November 2003 after which shares dipped but then rose over 700% on the launch price. Prices increased 174% in 2005, 43% in 2006 and 42% in 2007 but fell 71% in 2008 and recovered 125% in 2009. The market cap of the company is $548 million ($102 million in cash reserves) which in our view is a little high for this early stage of the commercialisation cycle. Because of a number of issues including the aggressive push to commercialisation and the global fund raising, speculation has maintained prices. There was a surge in price associated with positive clinical trial results and additional funds were raised in association with this. However the uncertainties on world stock exchanges and delays in critical clinical trials affected prices which fell 34% and recovered but eventually declined 71% in 2008 following publication of improving year end results and broader problems on the stock market. Prices rose 125% in 2009 with promising trial results indicating further price increases are possible. There has been a decline of 6% in 2010 with acquisition of Canadian drug developer Topigen Pharmaceuticals in exchange for shares and slow growth in revenues. (26/2/10)

PYC - Phylogica Ltd.
Drug discovery company which listed at the end of March 2005 at a premium of 30%, and retained this value through 2005. The company was promoted at a time of downturn in the sector and it was reasonable to expect that prices would decline once initial euphoria had dissipated. In 2006, the shares of the company rose, fell then recovered and rose 88% overall associated with heightened expectations for company developments and new indications. This continued initially into 2007 but with some subsequent fall in prices due to lack of noticeable progress. This resulted in decision to change CEOs at the end of the year. We consider that longer term share trends will be similar to current levels: current market cap of $21 million is high (down 60% in 2007 and down 81% in 2008 but up 238% in 2009 associated with engagement of investment advisors and speculation over possible collaborations with large pharmas including Roche). There has been a 33% decline in 2010. (4/3/10)

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Last revised Thu, 11 Mar 2010
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