A new drug…

A new drug…

One of our brokers and a producer of some excellent insights into smaller capitalized companies in Australia, Baillieu Holst, recently attracted the skills of analyst Stuart Roberts who has wasted no time releasing a new 37 page report covering the Life Sciences sector. As many private investors rarely have a comprehensive understanding even of the players in this sector, I thought it would very useful to provide you with Baillieu’s summary (with permission) of each of the companies covered.

For those interested in opening an account with Baillieu and gaining access to their research, send an email to Andrew apodgornik@baillieuholst.com.au.

According to the report (see warning) Baillieu’s three top picks are: Alchemia (ACL) expecting Phase III data next year on a new cancer drug formation; Neuren (NEU) with its potential blockbuster CNS drug NNZ-2566; and Bionomics (BNO) also expecting data early next year on its BNC105 cancer drug.

Also note, Montgomery Funds own shares in Sirtex.

PLEASE READ THE IMPORTANT WARNING AND DISCLAIMERS BELOW

Alchemia (ACL) is in Phase III with HA-Irinotecan, a new formulation of an old cancer drug. Data from this metastatic colorectal cancer trial is due in the first half of calendar 2014. Phase II suggested a strong improvement in Progression-Free Survival for these patients.

Admedus (AHZ) has gained CE Mark approval for its first product, a cardiovascular tissue patch called CardioCel. Admedus is also seeking to be a player in the emerging field of DNA vaccines, backing the Gardasil inventor, UQ Professor Ian Frazer.

Bionomics (BNO) licensed the anxiety drug BNC210 to America’s Ironwood in 2012 for a massive US$345m in upfront and milestone payments. Bionomics’ BNC105 cancer drug reads out important Phase II data early next year.

Mesoblast (MSB) is pioneering the exciting field of regenerative medicine. The company has numerous stem cell trials ongoing including several Phase IIIs. An important partnership with Teva, one of the world’s largest pharma companies, is moving forward.

Nanosonics (NAN) is now earning revenue from trophon EPR, which disinfects ultrasound probes. This product has potential to become a healthcare industry standard, helped by GE, which is trophon EPR’s North American distributor.

Neuren (NEU) is developing NNZ-2566, now in Phase II in Traumatic Brain Injury (TBI) and in a rare condition called Rett Syndrome. Clinical success in either indication makes a potential blockbuster. The US government is funding the TBI trial.

Phosphagenics (POH) has developed the world’s first patches delivering the painkilling drugs oxycodone and oxymorphone. These products go to Phase II next year. Various potentially valuable collaborations related to transdermal drug delivery are ongoing.

REVA Medical (RVA) has developed one of the world’s first bioresorbable stents. This polymer-based product, called ReZolve, is now in a pivotal trial for potential CE Mark approval in 2015. We expect the product can help double a US$4-5bn global market for stents.

Sirtex Medical (SRX) now has a $100m-a-year business in its SIR-Spheres -radioactive beads for the treatment of liver cancer. We foresee a big jump in sales from 2015 once data from the first of a number of large clinical trials of SIR-Spheres is released.

Tissue Therapies (TIS) has, in VitroGro ECM, a compelling wound healing product for the treatment of venous and diabetic foot ulcers, but its European launch has been delayed by regulatory issues. Resolution of these issues could substantially re-rate the stock.

WARNING AND DISCLAIMER:

Baillieu Holst Disclaimer:

Baillieu Holst Ltd and/or its associates receive commissions, calculated at normal client rates, from transactions involving securities mentioned and hold interests in these securities from time to time.

This advice is issued on the basis that:
It has been prepared generally and should not be relied upon;

Intending investors should contact their adviser to ascertain whether any recommendation contained in this publication is appropriate having regard to investment objectives, financial position and needs;

and

no representation, warranty or undertaking is given or made in relation to the accuracy of information contained, being based solely on public information which has not been verified by Baillieu Holst Ltd.
Save for any statutory liability that cannot be excluded, Baillieu Holst Ltd and its employees and agents shall not be liable (whether in negligence or otherwise) for any error or inaccuracy in, or omission from, this advice or any resulting loss suffered by the recipient or any other person.

Baillieu Holst Ltd assumes no obligation to update this information or correct any inaccuracy which may become apparent after its publication.

Montgomery Disclaimer and Warning:

This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564) and may contain general financial advice that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs. You must seek and take personal professional advice before acting on any information published.

MORE BY RogerINVEST WITH MONTGOMERY

Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.

This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.