Listed Biotechnology Companies D to H
This Page Last Updated On 21/02/12
Ellex disappointed the market in FY2004 and FY2005 due to problems in the target markets and declining profitability. The company has now shifted focus from OEM to controlling distribution specifically in the ophthalmic laser market. This involved short term costs and loss of profitability with a view to improved long term profitability. The company has been undervalued by the market despite having good technology, significant revenues and exports. The market cap at the end of 2010 of $26 million was very low on the basis of fundamentals now that revenues are up significantly and profitability has returned. We expected that there would be price increases in 2008 following the downturn now that the company was buying distribution companies to improve market presence and US companies to increase market spread (up 106% in 2006 but down 6% in 2007 and down 88% in 2008 due to a double downwards revision in sales projections, replacement of CEO and cash flow problems as customers reduce demand). Despite the downward revision in sales projections but increased sales as indicated by last financials, this company remains substantially undervalued. Prices increased 80% in 2009 and this was expected to continue with significant international market penetration announced but uncertainties about continuing bank support tempered expectations for price increases as well as some softening of sales projections. There was a 69% increase in 2010. Initially there was a fall in 2010 as a result of GFC but improving financials suggested there would be an increase in prices during 2010 with gradual opening of market in US and this appeared to be occurring as the company returned to profit and increased its distribution business. However the negative aspects of the strengthening dollar in the latter half of 2010 has reduced profit projections with an associated fall of 57% in 2011 to $11 million. Some recovery is associated with expanding product lines which is expanding market opportunities and consolidation of manufacturing to reduce costs. There has been a 38% rise in early 2012 to $15 million due to expectations of improving profitability. (5/2/12)
Company investigating the detection of breast cancer through an apparent change in the structure of hair samples. Even if the test works (other research groups have not been able to confirm the findings apparently due to different sample preparation protocols), there will be questions about specificity, timeliness and cost which could affect the degree of commercialisation. As a result, the current market cap of the company is reasonable at $4 million with speculation driving prices (up 50% in 2006 following listing at end of October 2006, down 2% in 2007, down 80% in 2008 and down 85% in 2009). In April 2009, merger proposal between Polartechnics and Fermiscan announced with a significant fall in price and this proposal was not concluded when the expert's report found that the proposal was neither fair nor reasonable. There was a limited recovery in value with commencement of precommercial trials in Australia and turnover on the Board. However, significant losses have led to review of strategy by new Board, sale of Breast Cancer Clinic at significant loss and potential for sale of Fermiscan technology. The litigation against the inventor of the technology failed and failed again on appeal with significant costs to the company which was then forced into voluntary administration. The administrator has sold the IP of the company for a negligible amount, has wound up subsidiaries and the company shell remains. Administrator is no longer in place and company is under advice of two accounting companies which are restructuring the Board, putting in place funding for clinical trials and seeking reinstatement to the ASX. An agreement has been reached for conclusion of clinical trials but a question remains about relevance of trial conclusion if company no longer possesses the relevant intellectual property. Reinstatement to official quotation occurred in March 2011 with 90% fall to $2 million followed by a gradual recovery (now down 60% at $14 million. With clear indications that this company is moving into the resources area, coverage will cease from end of 2011. (25/11/11)
Fluorescent compound developer listed end October 2008 seven years after establishment. Gained income from international licensing as well as sales from companies in Australia, US and Germany. Needed to ramp up sales to justify high initial market value but more than halving of projections for FY2009 led to declines (down 60% in 2009 to market cap of $12 million). There was a further 91% decline in 2010 to $2 million. This company was vulnerable and required funding to continue. The selling off of some divisions and the recent fund raising with a change over of the board offered some potential for the future with funds available for new investments. Delay in completion of annual report resulted in share suspension in October 2010 until March 2011. CEO departed and stocks again in official quotation with a small increase before a 47% fall leading up to the AGM. The company is now indicating that it will be concentrating on the resources sector in future with German subsidiary in administration. Down 74% in 2011. Due to option to acquire resource company, shares jumped 150% in 2012 (now up 50%). Coverage to be discontinued from end of February 2012. (20/2/12)
Melbourne-based start up commercialising diagnostic and other tools listed in Jun 2008 and shares promptly fell 40% and eventually 52%. However, there was a 231% increase in 2009 associated with positive trial results and adoption of the test by a key pathology laboratory chain in Australia as well as TGA approval. Revenues are still meagre and market cap of $11 million is high despite new developmental agreements negotiated (down 43% in 2010 and down 68% in 2011 following delay in signing of commercial agreement and slow growth in sales). There has been an unexplained 38% increase in 2012. (16/2/12)
Since listing eight years ago, shares in this company have fallen over 95% indicating that early expectations have not been met. The share price fall has been very constant, including a 54% fall in 2005: there was some stabilisation in 2006 (up 20%) and 2007 with a late fall (down 27%). There has been a further 65% fall in 2008 and 14% in 2009. The market cap of only $1 million is significantly less than the investment made and equivalent to the cash reserves. The resolution of litigation by ArborGen provided additional funds as did the sale of BioJoule but lack of payment and potential litigation regarding BioJoule is a significant weakening factor. The company needs to improve revenues, reduce costs, raise more funds and provide more project focus but there appears to be little evidence of this and company is now highly vulnerable. There was a 100% speculative jump in July 2009 associated with fund raising. 2009 financials indicate reduced spend but little signs of developments. In 2010, there was a sharp fall in prices (down 58%) followed by suspension of activities in New Zealand due to lack of funding and sale of equipment. There was an unexplained recovery in July 2010 (eventually down 62%). There was a further 13% fall in 2011 as the company looks for new business with a recent unexplained 100% jump resulting in prices up 30% for the year. This appeared to be resolved with the announcement in early 2012 of a proposed merger with the Australian company Mariposa Health. (31/1/12)
GID - GI Dynamics Inc. US company with innovative implant to reduce caloric intake listed on ASX in September 2011 after raising funds @ $1.10. Share prices fell 15% in 2011 following listing. Shares have increased a further 15% in 2012 to company value of $300 million with progress being made in the European market. (21/2/12)
GTG has been an enigmatic company claiming a significant portfolio of patents in the DNA area which initially was discounted but which over time is being acknowledged by some companies as worthy of being licensed in return for fees. The success of GTG will depend on its ability to enforce its patent portfolio in the market. Shares increased four fold in the year to August 2003, but thereafter, prices fell over 50% until the September 2004 announcement of positive trial outcomes in the litigation with Applera which doubled the share price. Since that time, the prices have gradually declined then recovered before falling heavily on the announcement of a resolution of litigation with Applera which was not seen as totally positive for GTG. There has been a further substantial fall (63%) in 2007 related to an ASIC inquiry into activities of executives of the company but countered by the deal with Monsanto. There was a temporary recovery associated with the premature announcement that FY2007 would be profitable and the appointment of a new CEO. The company had a market cap of $13 million at the end of 2010 (prices down 15% in 2006, down 57% in 2007, down 67% in 2008 and down 16% in 2009). Realisation of value will only come with a further substantial increase in income and a shift to profitability with the first signs being the favourable FY2007 and FY2008 results although revenues are stable rather than increasing. Confusion caused by proposal by largest shareholder to dump other directors which was successful in November 2008 probably contributing to further drop in price - down 67%. Situation further clouded by charges against key director and major shareholder in company for market manipulation leading to his resignation. There was a moderate recovery in prices in 2009 following appointment of new CEO but by years end, prices had again fallen. There was a temporary recovery in early 2010 with licensing in of new genetic tests, acquisition of a breast cancer test and new fund raising but prices were down 21% by the end of 2010 with establishment of US diagnostics operation, new licence to Monsanto, licensing wins with Innogenetics and Pioneer Hi-Bred and costs being contained. There was a 233% increase to $51 million in 2011 on the basis of substantially improved licensing income, the forthcoming launch of a breast cancer diagnostic, promotion in the US, successful litigation and the launch of new infringement suits and first signs of profitability of the company. Shares were suspended prior to a capital raising and fell over 40% following the announcement. There has been a 23% increase in 2012 to $63 million without explanation. (3/2/12)
Previously called CollTech Australia, this company listed in February 2004 as a producer of ovine collagen. Listing was premature and in first four years, income was meager. By early 2009, company value was vulnerable at $3 million and alternative business was sought with backdoor listing of Malaysian natural products healthcare company and associated name change. Prices rose 45% in 2009 and 38% in early 2010. However prices are oscillating wildly and prices were down 24% by the end of 2010 with market cap of merged company at $14 million which is above projections from fundamentals. There was a further temporary increase in 2011 (eventually up 5% at $15 million with announcement of deferral of collagen plant due to market conditions, new joint ventures with Indian and Australian groups and registration of new biopesticide). (2/2/12)
Previously called Cryptome Pharmaceuticals, completed merger with HealthLinx in March 2006. Previous company listed in November 2003 and shares rapidly fell by 20% and then stabilised before recovering to listing level. However with the sudden resignation of the CEO, prices fell 25% then recovered, but in November 2004, prices fell about 40% with a further 58% in 2005. Talks culminated in the merger with HealthLinx in March 2006 and the associated name change. There was a drop which was temporarily recovered with announcement of ovarian cancer biomarker trial and a further significant recovery with announcement of collaboration with Bruker Datronics. Prices fell 71% in 2006 to a market cap of $3 million but there was an increase from a low base in 2007 to a market cap of $7 million following fund raising. Company needed to show real results to support viability. Shares rose 33% to market cap of $8 million in 2007 with 1 for 5 consolidation and spin off of technology to another company. There was a 37% drop in 2008 with questions from ASX about viability of the company and positive publicity on effectiveness of its ovarian cancer diagnostic (market cap $5 million, down 37% in 2008.) There was a further 60% decline then a major jump with announcement of launch of ovarian cancer diagnostic in European market: up 38% to $11 million in 2009 with further funds raised. There was a doubling of share prices in 2010 with speculation about launch of diagnostic product in UK and but by year's end price was down 10% at $12 million with revenues still small, distribution through Healthscope suggesting revenue increases in the near future and some negative publicity that test may not save lives countered by positive trial results. There was a further 29% decline in early 2011 to $9 million with income still minimal but this turned around temporarily with announcement of positive trial results. A valuation of $106 million for the company’s intellectual property appears to be at considerable variance with the market view although the company has signed a new agreement with Sigma Aldrich for an undisclosed sum. The AGM in 2011 indicated lack of shareholder support for Board and CEO leading eventually to indication by CEO that he would resign in mid 2012 (down 85% to $3 million in 2011). (14/2/12)
Ten year old company developing technology for genetic modification of crops to enhance resistance to insects and fungal pathogens listed in August 2007 following IPO raising $37 million. Company value of $28 million is low considering the status of the technology, the time to commercialisation to justify the value, the funds raised and cash holding of $23 million. Nevertheless acceptance of genetically modified crops in some states offers some promise for the future as has the recent deal with DuPont subsidiary Pioneer Hi-Bred on fungal disease resistant crops. Prices down 72% since listing and down 61% in 2008 with recoveries associated with appointment of new CEO and deal with Pioneer Hi-Bred which now becomes a 5% shareholder. Up 13% in 2009 and down 27% in 2010 with appointment of Executive Chairman to reinvigorate the company. Recent rapid share price fluctuations as yet unexplained. Rose over 30% in 2011 but eventually down 11% at $25 million. Company delisted in June 2011 with shareholder approval. (18/6/11)
