Listed Biotechnology Companies B
This Page Last Updated On 22/02/12
This company listed in January 2004. It had been seeking listing for some time and, with an annual revenue in 2003 of $5.3 million and a slight profit, the time was ripe. In the year following listing, shares fell 70%, revenues fell and profitability disappeared. In the first half of 2005, there was a 100% increase in price (25% for all of 2005) based on optimism for the future, improving financials and concerns about the bird flu problem in Asia. This gain was more than lost with a 69% loss in 2006. The market cap in July 2006 of $7 million was borderline despite the deal with Nobilon, the first three payments associated with this, investor interest in companies developing influenza vaccines and treatments and possible applications in the animal feed additive area. However the announcement of an agreement with the Centers for Disease Control at the end of August 2006 resulted in a temporary jump in prices which fell 62%overall in 2006 and further in 2007 with a change of Managing Director. There was some recovery with the injection of funds in October 2007, although early clinical trial results for one of BioDiem's products were not encouraging. The company had a market cap of $18 million in 2009 (down 32% in 2007 and down 64% in 2008 but up 229% in 2009 as a result of concerns about influenza outbreaks and WHO licensing of technology). The potential of this company depends on speed of commercialisation which up til now had been supported by milestone payments from Nobilon. However, this has ended and BioDiem will now have to work hard to create value with the first alternative being royalty payments from Nasovac in India at the end of 2010. There was a decline to a market cap of $15 million in 2010 (down 37%) with further funds raised and some price oscillation in 2011 (eventually down 42% to $9 million). Acquisition of Savine Therapeutics had no impact on share price but there has been a sudden fall and recovery early in 2012 with licensing of technology to China (up 7%). (19/2/12)
When Biotron listed a decade ago, it was hard to determine the justification for listing. Following listing, prices dropped 50%, bottoming at 17¢ in July 2004 then bouncing to over 30¢ before gradually declining to around 9¢ with speculative rises due to research findings on potential anti-influenza and anti-HIV products. The company had a market cap of $20 million at the end of 2011 which was high and prices were expected to fall again as the company had not yet indicated any substance. In early 2007, prices which were level in 2006 spiked up 60% as a result of speculation over early laboratory results with one of Biotron's compounds but by year's end were down 22%. Shares oscillated wildly in 2008 and a jump was unexplained (down 33%). There was some uncertainty in 2009 (down 20%) with little signs of routes to commercialisation and prices rose 26% in 2010 due to heightened expectations for clinical trial results. There were price oscillations in 2011 (eventually up 4%) associated with a new round of fund raising and positive results in clinical trials. Raising of new funds and optimism about the future increased share prices in 2012 (now up 24% at $35 million). (21/2/12)
Following listing of the company in August 2002, the share price grew from 25¢ to over $1 by September 2003. The technology works in the laboratory, but there has been some question as to its practicality in the field. As a result, we considered that the highest market cap of the company of $80 million was too high for a technology at such an early stage and we expected prices to fall. It was therefore not surprising that shares fell 50% in 2004, a further 70% in 2005 and 49% in 2006 with a late recovery associated with new prominent shareholders. This recovery has carried over into 2007 with a 65% speculative jump associated with licensing of Benitec technology via Sigma Aldrich to Pfizer and fund raising (up 22% in 2007 following favourable court decision). There was a further temporary speculative jump in 2008 associated with related parties but prices fell 63% in 2008, changed little in 2009 and down 45% in mid 2010 following agreement to give CSIRO a 10% stake in company, Pfizer taking up option to develop products with Tacere, a licensee of Benitec and appointment of CSO as CEO. The market cap at the end of 2010 of $12 million (following fund raising and speculation) was reasonable. The company has gained licensing opportunities and the investment by companies like Promega offered some blue sky potential. Difficult conditions in 2008 and 2009 forced cost cutting activities and staff reductions. However, USPTO acceptance of Graham patent has led to an almost doubling of share price in September 2010 following a decline (down 34% in 2010). There was an increase in 2011 but a clear decline from mid year and was eventually down 40% at $14 million (following 4 for 5 rights issue) with little evidence to support any improvement other than speculation, an improving patent position and a rights issue to recapitalise the company. There has been a 33% increase in early 2012 to $19 million due to speculation over application of technology to hepatitis therapy. (2/2/12)
Company previously performing airborne geophysical surveys reached agreement in June 2004 to merge with UK-based biopharmaceutical development company Bone Limited which is developing oral delivery of calcitonin. Following the merger, the company relisted in September at a premium of 25% over the restructure price. This company was promising much and as a result there were expectations pushing up the share price. However there was a marked drop in prices in March and May 2005 to 50% below the launch price. Overall, prices fell and partly recovered in 2005 (down 44%) and fell 52% again in 2006 with erratic price shifts. There was an 83% recovery in 2007 associated with increased expectations for the company's TNF regulator product under preclinical tests. However the sudden oscillation in share prices in June was not explained. Prices rose 95% in 2007 but fell 49% in 2008 and 33% in 2009 but there was a temporary recovery in 2010. The market cap at end of 2011 of $1 million was fair following capital raisings and announcement of IND application to FDA for Capsitonin. There remains uncertainty about the future with limited funds, a new CEO and further speculation likely (down 69% in 2010 and down 88% in 2011). There have been unexplained large oscillations in share price in 2012 (offloading of shares by a major investor?) with further funds raised but little other to excite optimism (up 220% at $3 million). (18/2/12)
The share price of the company dropped to a low of 20¢ at the end of July 2004 then increased 50% up to the end of November 2004 due to a strong push to have alliances in the US and Europe, but retreated to the 20¢ level since then, despite the merger with Iliad Chemicals. Following the merger, associated capital raising and recent announcements of licensing arrangements, there has been some price oscillation. We expected share prices to remain at around these levels or increase if further alliances with the US and Europe could be built. In the longer term, the company will need to demonstrate significantly increased revenues (gradually occurring) and eventually profitability. There were no major changes in prices in 2006 (up 4%) but with the announcement of a new CRC for Cancer Therapy which would be closely associated with Bionomics, there was a jump in early 2007 followed up by new candidate drugs in the pipeline (up 79% in 2007). There was a fall and recovery in 2008 (down 46%). The company had a market cap of $99 million at the end of 2010 which was reasonable (up 67% in 2009 with announcement of $15 million placement but down 17% in 2010). There was an 105% increase in 2011 to $219 million with announcement of positive clinical trials, positive promotion in the market and sale of majority of Start up Australia holding as well as new funds raised. However general share market downturn has affected prices (eventually 90% at $203 million). There has been an 18% decline to $167 million with announcement of collaboration with Ironwood Pharmaceuticals. (22/2/12)
Yet another safety syringe developer listed in March 2004 without, in our view, sufficient justification. As a result, there was a steady decline in the first year followed by temporary speculative rises associated with the diversification into Celxcel, a tissue engineering company, in late 2005 and again in August 2006 with early laboratory results by Celxcel. This speculation raised prices 50% in early 2006 following a 47% fall in 2005. There was a further speculative rise in late 2006 which continued over into 2007 (shares up 38% in 2006 and a further jump up 45% in early 2007 but down 9% overall in 2007). The developments in Celxcel are very early stage and the current market cap of $4 million is reasonable, but vulnerable (down 50% in 2008, down 16% in 2009 despite good trial results and down 29% in 2010 following discontinuation of trials but first milestone achieved in heart valve trial). There has been an 83% jump in 2011 to $7 million driven by speculation and broker promotion leading to the announcement of a reverse takeover of Allied Medical which is now 90% owned by bioMD. Takeover has been success with an associated change in Board and senior management and with a 167% increase in 2011, company value is $45 million. Name to be changed to Allied Healthcare Group Ltd (ASX:AHZ). (29/6/11)
Since its listing in Jan. 2001, BPO had not met expectations and the share price had continually fallen finishing at 5¢ in March 2003. Subsequently, there was some recovery, probably supported by diversification to improve short term revenues, but the price again fell, 50% in the first six months of 2004. The market cap of $7 million in June 2004 indicated its borderline position and there appeared to be little to support any price increase. However, the 250% increase in July associated with an announcement on the effectiveness of a termiticide provided hope. Since then prices gradually declined towards the 1¢ level with a 72% decline in 2005 and a further 9% fall in 2006. There was a 105% recovery in 2007 associated with the deal with Solagran on development of BioEffectives for the animal health sector. However since July 2007, there has been a further gradual decline in price due to lack of noticeable progress (down 50%). The company now has a market cap of $4 million (following recent capital raising providing cash reserves of $1.4 million) and the need to push commercialisation quickly appears now to be focused on BioEffectives. Down 63% in 2008 as a result of the fall out of the Opes Prime collapse. Removal of Chairman prior to AGM indicated major shareholder and associates were exerting more influence over the company. There was a 160% increase in 2009 with acquisition of Re-Gen a natural health products company but with lack of revenue, shares have declined 82% in 2010. There was a dispute between Solagran and Bioprospect over a development agreement putting downward pressure on prices. This was eventually settled with Solagran selling its 9.75% share in BioProspect. Bioprospect is also removing its reliance on Solagran for green conifer needle extract by substituting with a coniferous chlorophyll carotene paste. Bioprospect has suspended its Termilone program due to lack of effectiveness and is concentrating on its animal health products range with additional fund raising which has pushed price down further (down 74% to $10 million). There was a 40% lift in prices in 2011 to $16 million with new funding arranged and a move into the energy resource sector (now down 60% at $6 million with acquisition of 50% in Frontier completed). There has been a 25% increase in 2012 to $8 million. (7/2/12)
Following the listing of BRC seven years ago, the market showed little interest initially in the company because of the lack of movement or commercialisation. Following July 2003, there was significant interest with doubling of the share price due to announcements of commercialisation of product and the potential collaborations with major pharmaceutical companies. However, this pressure was not maintained and prices fell to 30¢ before increasing by 50% from August to November 2004 but fell back to the 20¢ level by August 2006. There has been a 100% increase since that time associated with substantially increased revenues and profitability. However a sharp drop in October 2008 was of concern. In our view the market cap of $18 million is low now that the company has produced two profitable years (prices down 28% in 2006, up 70% in 2007, down 56% in 2008, up 50% in 2009 but down 33% in 2010 with latest financial results indicating a slow growth in revenues). Prices rose 15% in 2011 ($21 million) with a levelling off in income and profitability with new moves or new announcements likely such as take up of MyBrainSolutions and new ADHD joint venture. There has been an unexplained 13% increase in 2012 to $24 million. (22/2/12)
At the end of February 2004, there was a 40% increase in Biota's share price on the basis of statements that Biota's Relenza might be effective in treating bird flu. Some of this was lost by September and there was another jump associated with a US grant and fund raising although much of this dissipated by December 2004. Stocks have remained sensitive to speculation since then including a jump associated with stockpiling of Relenza in Germany, the Netherlands and other countries. With two substantial fund injections and speculation, prices rose 173% in 2005, stabilised in 2006 (up 10%) and fell 24% in 2007 (due to lower than expected revenues). There was a further fall in 2008 (down 73%) and significant recovery in 2009 associated with increased royalties and speculation associated with swine influenza concerns (up 619%). The company had a market cap of $179 million at the end of 2010 which was reasonable after litigation with GSK was resolved and royalty projections reduced. There was speculation in 2009 over improving sales of Relenza, commercialisation of LANI technology, positive full year and half year results, recent advice from Glaxo on an uptick in Relenza sales and publicity about effectiveness of Relenza for treating swine influenza. There was a 59% decline in share prices in 2010 with withdrawal of Boehringer Ingelheim from drug development collaboration, substantially lowered royalty projections and launch of new LANI drug in Japan as well as effect of Global Financial Crisis. Speculation over royalty income has resulted in a further 54% increase to $275 million in 2011 and this increase was halved when revenues fell and profit disappeared. There was a further jump with announcement of large development contract in the US (eventually down 19% in 2011 at $145 million due to world economic downturn). (12/2/12)
After relatively stable prices in the mid 40¢ range during 2004, prices fell 15% in 2005 in line with declines in the biotech sector in 2005 but recovered to their former trading band until late 2006. The company appeared to be losing momentum in late 2006 and prices declined significantly and this was partly countered by share buyback (down 7% in 2006). The decline continued in 2007 (down 20%), in 2008 (down 63%), in 2009 up 161% and down 58% in 2010. The company has a market cap of $5 million which is less than its reported net asset backing of $6.7 million even after recent write offs. The company was considering alternative options for moving forward including removal of pooled development fund status and investment outside the biotech industry. This culminated in board change indicating move out of life science sector. Share buyback has been supporting price but with the change this is no longer effective as there are questions about the value of the company's portfolio and more write offs are likely. Prices oscillating and eventually down 43% in 2011 with dividends being paid and shareholdings being offloaded for around half of book value prior to restructure of company and removal of PDF status. There has been an unexplained and temporary 41% lift in early 2012: now down 6%. (3/2/12)
