Listed Biotechnology Companies C
This Page Last Updated On 1/09/13
CAQ - Cell Aquaculture Ltd.
This company listed in July 2005 with the aim of commercialising a land-based aquaculture system and with a number of international joint ventures under negotiation. Following listing, prices rose 40% indicating the high expectations which would have to be matched with commercial developments. Developments were the entry into the US market, the joint venture with Delta (discontinued), the operational facility in Europe and the two joint ventures in Malaysia where production was commencing. Prices down 21% in 2006 to just over par, down 25% in 2007 and down 39% in 2008 following fund raising but up 50% in 2009 following announcement of new ventures in South Africa, Singapore and Malaysia and associated fund raising. Company value was $21 million and prices fell 20% in 2010 following substantial investment by Dutch company and commencement of commercial production in Thailand. There was a further 31% fall in 2011 until release of an analysts report returned shares to par (eventually down 68% to $8 million with prospects in Malaysia improving and new fund raising hitting obstacles leading to suspension (4½ months) until new arrangement could be reached). New funding in May 2012 resulted in ending of suspension and shares falling 47% to $5 million with a modification of company business as it moves out of “hatch and dispatch” business and new arrangement in Malaysia. Shares again suspended in October due to failure to lodge accounts and in November 2012 company passed into voluntary administration. The company is now in the process of capital consolidation and reduction in share capital approved by most recent AGM with delisting due shortly. (26/8/13)
Previously called Cygenics Limited - name change to Cordlife in April 2007 and to Life Corporation in July 2013. This Singapore biotechnology company moved its headquarters to Melbourne to list on the ASX in June 2004. Following listing, shares fell 70%, mainly in the first half of 2005 and in mid 2006 with significant recovery afterwards. Shares fell 28% overall in 2006 but rose 124% in 2007. There was a 61% fall in prices in 2008 which was of concern but there was a rebound and prices rose 124% in 2009. The market value of the company at that time was $45 million which was reasonable as revenues were increasing significantly. In view of this, there was upside for the company but this was slowed in the short term by diversification into the European market. The company then concentrated on its core revenue generating business suggested significant upside following the market downturn in 2009. Up 124% in 2009 following fund raising and acquisition of strategic stake in Chinese market but down 45% in 2010 with evidence of declining profitability and further fund raising for acquisitions. There was a further decline to $10 million in 2011 (down 78%) with the announced capital reduction and demerger of Singapore operation from other developing businesses. Prices down 34% in 2012 to $8 million with resignation of managing director. Prices up 22% at $9 million value in 2013 with sale of subsidiaries in other Asian countries completed and change of company name to Life Corporation approved. With name change ticker changed to ASX:LFC. (9/7/13)
Ten year-old company developing a product for the treatment of autoimmune diseases listed in February 2010 after 5 years of clinical trials. On listing shares fell 79% and company was valued at $31 million by the end of 2010 following additional fund raising. The company recently received a payment from Novo Nordisk after meeting clinical milestone and then raised further funds to support clinical trials. There was a 216% increase in 2011 to $107 million due mainly to speculation, company promotions and new capital injections. The announcement in August 2011 that a clinical trial did not meet required endpoints resulted in a 50% price loss and shareholder dissatisfaction resulted in almost total board and upper management turnover (eventually down 71% at $15 million following decision by Novo Nordisk not to take up an option to extend collaboration and further departure from Board of international scientific directors). There was no significant price move in 2012 with option payment from Novo Nordisk and institution of legal proceedings against former directors as well as completion of strategic review. The latter resulted in a proposal for acquisition of the US company Inverseon Inc, a proposed name change to Invion and a 29% drop in share prices to company value of $11 million. Company name changed to Invion (ASX:IVX) at end of August 2012 (6/9/12)
Previously called Medical Therapies which listed without a clear justification in 2005. By 2009, market cap had fallen to $6 million with speculation over 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 covering midkines to add blue sky potential in 2008. Company name was changed to Cellmid in November 2009. Company market cap at $7 million in October 2010 (down 6% in 2009 and down 38% in 2010) with new funds raised and licensing opportunity found. There was a tripling of the share price in November 2010 without explanation and shares then declined to a loss of 12% in 2010 with a market cap of $10 million. There was a significant rise in 2011 associated with preparations for clinical trials (eventually down 47% at $7 million following conversion of convertible notes and with further funds to be raised with only a 25% take up in fund raising at end of 2011). Prices declined 6% in 2012 with company value of $8 million following TGA approval for new hair product line which has just been launched and earning income and new funds raised. There has been a 100% rise in 2013 to $20 million associated with new funds raised and new licensing deal with Fujikura as well as new shares in Pacific Edge. (28/8/13)
This company listed in February 2004. General review of documentation indicates that this company listed too soon and should have undergone a further funding round before listing. Because of this, we expected shares in the company to be depressed for at least two years unless there was significant speculation in the stock. It was therefore not surprising that in the first two years prices fell 75% and the company had a market cap of only $5 million with $2 million in cash reserves and projections of increased income at the end of 2005. At that stage, the company was undervalued but if revenues could be increased, prices were expected to increase later in 2006. There was a significant increase in revenues which pushed prices up. In 2006, prices rose 91% and prices were up 5% in 2007 until an unexplained drop in June probably associated with company continuing to make losses. The company's market cap was $16 million at the end of 2010 (down 41% in 2007 and up 23% in 2008 following fund raising). Revenues are growing significantly and first profits have led to 97% increase in prices in 2009 but down 25% in 2010 with improving profitability. In our view, the company is currently undervalued and value dropped with signing of new joint venture. There was a 2% increase to $18 million in 2011 with indications of reduced revenues and profitability. New programs and contracts are likely to bear fruit later in the financial year indicated by a 56% price rise in the last three months of 2011 and significantly better year end financials (up 38% to $25 million in 2012). Prices have increased 64% to $42 million in 2013 with financials indicating steady state. (28/8/13)
As a management and investment company, CIR has been relatively strong in the past as some of its investments have provided a commercial return or at least some value in the stock market. Until recently, the market cap was supported more by net asset backing rather than economic revenue or returns. The outlook for share prices remains uncertain. There was a clear 45% decline in prices in 2005, an increase of 35% in 2006 and a 22% decrease in 2007 associated with gains from sale of Zenyth shareholding to CSL, announcements of investments and funding in new areas and collapse of Metabolic share price. The sale of Axon and Zenyth provided income and profitability but now the company will have to work on the next growth area to maintain value. This is Vegenics (recently fully acquired), although this could be some time from commercialisation. Shares declined 52% in 2008, in line with the overall fall in the market but there was a 21% recovery in 2009. Company market cap of $27 million in 2009 was little more than cash holdings of $22 million. Problem with licensing arrangements of VEGX technology to Ark Therapeutics has been resolved. There was a decline and recovery in prices in 2010 (down 19%) which continued into 2011 (down 18% to $22 million). There was a recovery in 2012 associated with commencement of clinical trials and positive diagnostic tests leading to a fund raising which again depressed prices (down 26% at $17 million) and launch of new diagnostic product. There has been a 23% decline in 2013 to $13 million. (22/8/13)
Share price performed extremely well in 2003 with an increase from 17¢ to 71¢ and the company showed good returns. However in 2004, the share price dropped 40% and stabilised with some recovery as turnover and profits were up. This was due to an exit from the fine chemical business, loss of a key customer in Europe and increasing competition. In 2007, there was an increase in prices associated with company reorganisation and increased sales. The company has a market cap of $64 million which is reasonable on the basis of turnover and profit. While we expected strengthening of the share price in 2005, prices fell 50% and fell a further 21% in 2006 associated with reduced earnings despite increased sales. This continued in 2007 with a fall but there was a 60% recovery associated with expectations of increased sales and profitability in FY2008 which were confirmed by end of year results but general market concerns have pulled down prices (prices up 27% overall in 2007, up 9% in 2008, up 36% in 2009 and up 59% in 2010 with release of positive annual results for FY09 and FY10 together with Numega plant being fully operational but joint venture has significantly reduced profitability). There was a decline of 23% to $50 million in 2011 with announcement of reduced revenues but return to profitability and signing of major new deals offers potential for future. There has been an 93% increase to $96 million in 2012 with financials indicating continuing growth and profitability. There has been a 2% decrease in 2013 with company value at $94 million in 2013 with continuance on long term supply agreement with major company. (16/8/13)
Following listing 10 years ago, Compumedics share price lost 80% in the first two years followed by some recovery in the next two years but a further 73% fall in 2005. The company has significant turnover and exports and was profitable in 2004. Furthermore, it has prepared platforms for moving further into international markets. However in February and again in July 2005, financial projections were revised significantly with significant losses associated with smaller margins and costs of expanding the marketing and sales effort. There was a further 43% decline in prices in early 2006 with a significant recovery in July associated with maintenance of sales levels and improved profitability in the second half of FY2006. This was followed by a 90% jump in November when market interest in the company returned after a long period. At the end of 2006, prices were up 39% for the year but fell back in 2007 with some recovery in July (down 3% in 2007). There was some price fluctuation in 2008 (down 19%). The market cap in 2009 was $31 million which is low based on fundamentals. The company is reporting reasonable sales levels and profitability, the outlook for the future should be greatly improved and further rises in share prices can be expected when overseas markets pick up. Prices up 44% in 2009 and up 6% in 2010 following financials which indicate reduced revenues and profits. However, sales were starting to pick up in the US which indicated increases in 2011 (with signs of this a 90% jump at the end of 2010). There has been a 53% fall to $15 million in 2011 with latest financials indicating declining revenues and reduced profitability and despite large orders from China and the US. There was a further 18% decrease in 2012 to $12 million with new advances promoted but lack of capital holding up sales and a 19% increase in 2013 to $15 million with financial outlook improving and some investor support as well as new support grant in France and new sales in the Middle East. (29/8/13)
Previously Cardia Technologies. Diversified company which was not providing sufficient resources in any area and then addressed this by reducing presence in biotechnology and emphasising work of its subsidiary Aquenox which has not met expectations. Had mediocre performance during 2003, prices fell 50% in 2004, fully recovered in October then fell 66% in 2005 but rose 217% in 2006 and 16% in 2007. There was a 76% fall in 2008 and price oscillations in 2009 (up 10%). With a market cap of $15 million following the acquisition of Biograde in early 2009 and subsequent fundraising, the company value is reasonable and any increase in this value will depend on commercialisation of Aquenox (appears to have failed) and growth of the bioplastics business. Company name changed from Cardia Technologies to Cardia Bioplastics in July 2007. There were price oscillations in 2010 with prices down 27% to $14 million following deals with KFC, Belfa Group and Nestlé and 60% take up of rights issue. Prices down 44% in 2011 with establishment of new subsidiary and OTC trading commencing but revenues appear stagnant and a new fund raising has been successful, value at $12 million. Further fund raising in 2012 has depressed the price a further 78% with company value at $4 million. There has been some recovery in 2013 with new investors and new projects (up 50% at $6 million). (24/8/13)
Despite Cochlear's domination of its markets, share prices had been falling since peaking in December 2001and levelled off at $21 by the beginning of 2004. However there was a clear 81% growth in 2005 (including a downturn associated with a market correction). The outlook for 2006 had been for slower growth than in the past with continuing profitability but positive financial results and the acquisition of Entific of Sweden promised more for the future. However, the upward trend was halted by a market correction and less than positive reception of FY06 financial results. Growth in the share price recommenced following this. However reporting of record half yearly results in February 2008 resulted in the share price dropping indicating the sanguine state of the market. The market cap of $4.1 billion is reasonable and with good financial year results, prices rose 27% in 2006, 29% in 2007 but fell 26% in 2008 (in line with market fall). Once current market conditions pass, prices should more than recover as latest financials are very positive (up 25% in 2009 and up 16% in 2010 with improving financials and difficulties experienced by competitors supporting the moves). There was a fall and recovery in 2011 associated with a general market decline but latest financials indicate continuing growth. However announcement of a voluntary recall in September led to a 42% drop to $2.6 billion (eventually down 23% at $3.5 billion). There was a further early decline in 2012 which was corrected mid year when losses from recall were not as large as expected and then prices steadily increased (up 28% at $4.5 billion). There was a 27% fall in 2013 resulting from poor response to release of half yearly financials and company value has fallen to $3.3 billion with the exit of some institutional investors. (27/8/13)
The company completed acquisition of Aventis Behring blood products business and this is covered in more detail by other analysts. The company has also divested its Animal Health and JRH Biosciences businesses. The fundamentals of CSL are such that a significant share price increase was expected during 2004 and there was an increase of over 50%. We expected this to continue in 2005 with a greater focus on the high value blood fraction and pharma sectors and shares rose 45% with significantly improved turnover and profits. This continued in 2006 spurred on by improved trading in the plasma therapies market and improved profitability outlook leading to prices rising 54% in 2006. The merger with Zenyth Pharmaceuticals was completed with little significant impact on price. There was a further 67% increase in 2007 despite a temporary dip associated with unfavorable publicity about the Gardasil vaccine. Prices down 7% in 2008 following announcement to acquire Talecris Biotherapeutics, positive FY2008 financials and successful fund raising for the Talecris acquisition. Prices down 3% in 2009 following decision not to continue with Talecris acquisition and decision on share buyback, and up 12% in 2010 following financial results showing no growth. There was a 12% decrease in 2011 despite a share buyback and with lack of revenue and income growth (value $16.6 billion). There was a decline and then a steady recovery in 2012 to $26.9 billion (up 68%) with improving full year results, share buyback supporting price increases and an improved profit outlook for the current financial year. There has been a 23% increase in 2013 to $32 billion. (23/8/13)
Since listing in May 2002, shares have drifted downwards as company is operating in a limited niche with an expectation of slow but steady growth after one or two years. Company has carved out a clear but relatively unexciting niche and was expected to grow slowly over next 2-5 years. Shares increased in line with increased optimism in the market after June 2003, but prices fell 35% during 2004 and 15% in 2005 despite the bearish market due to announcement of contracts with Bristol Myers and Pfizer. Prices remained more or less the same in 2006 and 2007. The current capitalised value of $5 million is low and we expected some growth in the share price in line with improving financials and continuing profitability but there appears to be a lack of faith in the company. Prices down 53% in 2008 but this company has potential for price increases (prices up 79% in 2009 but down 27% in 2010 even though the company is trading in line with or slightly below fundamentals and is profitable). There was a further 23% fall to $4 million in 2011 until sale of a large shareholding provided a temporary fillip (up 32% to $7 million in 2011). Chairman voted out at latest AGM on low numbers and reappointed by Board but is now exiting for new chairman with subsequent speculative jump in share price as new chairman increases holding in company. There was a 162% increase in 2012 to $18 million with revenues and profits increasing in FY2012, a new collaboration agreement commenced and the first dividend paid. There has been a further 37% increase in 2013 to $24 million. (21/8/13)
Name changed from Epitan in 2006. This company did not really shine in the two years since listing in 2001. However, the market lift in August 2003 combined with promising press releases quadrupled the share price. This was maintained and there was even a further substantial increase in April 2004 and another temporary 20% increase in October/November 2004. We considered that the optimism was premature and there was a 63% decline in 2005. However there was a speculative 113% rise in 2006 but shares fell 52% in 2007, attributed to difficulties of a major shareholder (now exited). There have been some oscillations in 2008 (down 30% overall). The market cap of $63 million following a number of substantial placements is still higher than warranted for this stage in the commercialisation cycle although positive clinical trial results are helping as well as preparation for commercial production (up 13% in 2009 and down 23% in 2010 following 10:1 consolidation). There was a 10% recovery and fall in 2011 (eventually down 25% to $48 million) with announcement of first $1 million in sales achieved and positive results from clinical trials. There has been an 18% increase to $64 million in 2012 based on speculation on commercialisation prospects of the company, FDA agreement on further trials, new funding and further positive results from clinical trials. There has been little change in 2013 (down 1%) with company value at $63 million. (13/8/13)
Previously called Advanced Metal Coatings. Listed in October 2005 at a premium and although revenues consisted of grants and interest, value doubled in November 2006 due to high expectations for commercialisation of the company's cardiac catheters in the North American and European markets. Management of listing of the company and its profile in the market ensured that company value was initially maintained then increased (prices up 108% in 2006) but there has been an easing in 2007 (up 6%) and a serious decline in 2008 (down 81%) with a further 46% fall in 2009. However, in April, June and October there were unexplained jumps in prices. Market cap of $13 million (up 24% in 2009 with some funds raised but down 55% in 2010, a further 64% in 2011 and 20% in early 2012) will have to be matched with significant income in the near future. Initial fall in price appeared to be related to uncertainty about future funding which may have been overcome with recent fund raising. Lack of revenue growth and soft forward projections dampened prices in 2010 and resulted in change in CEO as well as strategic and product review which had an initial effect but does not appear to offer good outlook for early income which is reflected in recent financials. Lack of success in licensing technology has resulted in strategic change and management restructure with stand down of CEO and CFO and 95% drop in share price in 2012 to market cap of $1 million. Company delisted at the end of December and will raise funds after this to recapitalise the business. (31/12/12)
Originally called Metabolic Pharmaceuticals. Originally listed in 1999 and by 2007, market cap had reached $245 million which in our view was very high as a result of speculation and we expected subsequent falls. in the share price. 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 with announcement that clinical trials on a pain drug were discontinued. Company halted work on oral peptide delivery, closed laboratories and was looking to outlicense its osteoporosis drug. This culminated in July 2008 with announcement to acquire PolyNovo Biomaterials which was rejected by shareholders in November but since December 2008, the company initially took a 66% position in PolyNovo and eventually 100%. Shares rose 15% in 2009 with market cap of $9 million. In November 2009, company changed name to Calzada and acquired Xceed Capital's and CSIRO's remaining shareholding in PolyNovo under a share swap. In 2010, shares fell then recovered and are down 13% at $9 million with the Xceed holding in Calzada sold and the Calzada 17% holding in Avexa sold. Calzada proposed to vend in Metabolic Pharmaceuticals and its IP into ATOS Wellness (ASX:ATW) for 50% of company but this was not successful. Through its shareholding, Calzada was seeking to exert influence over Avexa and this turned into an unpleasant and unedifying exchange between the Boards of the two companies. Eventually Calzada sold its holding in Avexa and concentrated on its deal with Phosphagenics for a cosmeceutical based on AOD9604 with some recovery in the share price. There was a 115% increase in 2011 to $19 million based on speculation on possible application of AOD9604 to treatment of osteoporosis and positive results from Polynovo leading to a clinical trial. There was a 16% decrease in 2012 to $16 million with no significant improvement in financials. There has been an 87% recovery in 2013 to $36 million with announcement of positive clinical trials and new arrangements. (26/8/13)
