Listed Biotechnology Companies D to H
This Page Last Updated On 1/09/13
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 money 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 rise and fall in 2012 with a recent recovery to $16 million (up 46%) with end of year financials indicating revenues up 10% with significant profit but price sensitivity indicates concerns about deterioration in overseas markets affecting bottom line. There was a further 29% increase early in 2013 to $21 million in expectation of good half yearly results but these were wiped out when the company provided conservative projections but reversed again with announcement of launch of new product in US market and FDA approval for its new laser treatment device (now up 63% at $26 million). (23/8/13)
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 $13 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 was an unexplained 21% increase in 2012 to $13 million, possibly associated with speculation over a new hardware diagnostic platform and raising of new funds but this has been reversed (eventually down 17% at $10 million). There has been a further 17% decline to $8 million in 2013. (17/8/13)
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 an unexplained 100% jump resulting in prices up 30% for 2011. This appeared to be resolved with the announcement in early 2012 of a proposed merger with the Australian company Mariposa Health. Since then, UBNZ has opposed the proposed merger and the merger arrangement has been terminated. Prices down 37% with release of third quarter results. Announcement that company had run out of funds and board had resigned resulted in suspension from ASX quotation - a result which was a long time coming. (17/8/13)
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 oscillated in 2012 and company value was $158 million in the end (down 41%) with progress being made in the European market and first device inserted in Australia but litigation in the US is confusing the picture and prices fell after August. There was a 26% increase to $200 million in 2013 with announcement of collaboration with GSK and Medtronic, resolution of litigation in US, commencement of US trial and a continuing increase in sales but there was a decline in April/May. Now up 27% at $251 million with new centres in Europe and new French clinical trial and $58 million in new funds raised. (14/8/13)
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 was a 26% decline in 2012 to $38 million with deteriorating financials and a doubling of price in May 2012 with progress being made in the US market. However, AGM in November resulted in removal of number of directors including chairman and subsequent resignation of CEO as a result of play by major shareholder with a precipitous drop in share price (eventually down 35% at $34 million). There has been an 18% increase to $43 million in 2013 with improving half yearly financials but no explanation for the increase other than new agreements with large organisations completed and new fund raising. (28/8/13)
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). There was a precipitous 65% drop to $5 million in April 2012 despite collagen plant meeting significant orders and reduced losses with some subsequent recovery (eventually down 37% to $9 million). There has been a further 4% decline in 2013. (21/8/13)
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). There has been a further 83% fall in 2012 to $1 million with a key Korean trial providing positive results, new management introduced and agreement for sale of most of company’s IP to a US company, Mane Cancer Diagnostics, with shareholder approval. There was an announcement at the end of 2012 that the Mane agreement had expired and the assets of HTX are still for sale. Company still looking for commercial opportunities but has closed in-house laboratories. There was a change over of the Board and new financing indicating that the next adventure for Healthlinx was about to commence. Administrators for the company were appointed in early May 2013 and are currently looking for sale of IP. (15/8/13)
