In this edition.
The players’ bench in the biotech sector
sees lots of rotation with the result that an
apparently less well known performer can
run into the play and move investment
sentiment forward, compensating for the
hits and misses that previously dragged
down performance. Sirtex Medical is one
such star performer but its rise comes as no
surprise to readers of Bioshares who have
28 September 2012
been advised on this stock since Bioshares
(March Quarter 2001). There were someother surprising out-performers amongst the
Delivering independent investment research to investors on Australian
small cap biotech stocks in the third quarter.
biotech, pharma and healthcare companies.
However, the correlation between theBioshares Large Cap Index and the NasdaqBiotech Index over the last 12 months
reflects demand for counter-cyclical stocksthat can sustain earnings in the face of a
Strong Gains in Sirtex Medical Drive Growth
weakening global economy.Companies Covered: AHZ, Quarterly
in the Bioshares Index
Exceptional interest in Sirtex Medical helped push the Bioshares Index
territory in the September quarter, which rose 5.5% from the previous quarter. Shares in
Sirtex Medical rose 56% for the quarter, placing a capitalisation of $530 million on the
company. The increase in the Sirtex share price accounted for 40% of the movement in
the Bioshares Index. Sirtex shares were also 121% higher from September 30, 2011. Sirtex
Medical has now garnered the interest of brokers who cover the larger life science and
healthcare stocks. The company also announced the payment of a 10 cent dividend, up
The Bioshares Large Cap Index
continued to outperform, posting a 15.8% increase for
the quarter. This was the index’s fourth consecutive quarter of growth and is 47.3%
higher from the same point in time a year ago. The Bioshares Large Cap Index includes
CSL (Cap: $23 billion; +17% ), Resmed (Cap: $ 5.5 billion; +25%), Cochlear (Cap: $3.8
billion; +2%) and Sigma Pharmaceuticals (Cap: $759 million; +5%).
Av. annual gain (11 yrs)
The Nasdaq Biotech Index
rose 10% in the September quarter. Its 53.3% increase from a
year ago correlates with the performance of the Bioshares Large Cap Index. The Nasdaq
is published by Blake Industry &
Biotech Index includes an influential number of revenue and profit generating companies
in addition to a greater number of development stage biotech and medtech stocks.
Blake Industry & Market Analysis Pty LtdACN 085 334 292
The growth trends in the Nasdaq Biotech Index and the Bioshares Large Cap Index are
indicative of a flight towards stocks with protected and non-cyclical earnings. In con-
trast, the ASX 300 Index
posted a more modest gain of 9% for the last 12 months.
Capital raised by ASX-listed life science companies totalled $53 million for the September
quarter 2012, 17% below the $64 million raised in the June quarter 2012. The cumulative
Fax: (03) 9329 3350Email: [email protected]
total for CY2012 stands at $130 million, compared to $397 million for the first three quarterof CY 2011.
David Blake - Editor
Ph: (03) 9326 5382
The largest capital raising for the quarter was conducted by Unilife (US$20/A$20.3 mil-
Email: [email protected]Mark Pachacz - Research Principal
lion) and Sunshine Heart (US$20.125/A$19.7 million), followed by pSivida (US$5.36/A$5.24
million). If Prana Biotech’s $1.42 million is included, then 88% of capital raised in the
quarter was obtained through US investment banking conduits.
Individual Subscriptions (48 issues/year)
Index performances by Quarter
Q4 2011 Q1 2012 Q2 2012 Q3 2012
Copyright 2012 Blake Industry and MarketAnalysis Pty Ltd. ALL RIGHTS RESERVED.
Secondary electronic transmission, photocopying,
reproduction or quotation is strictly prohibited withoutwritten consent of the publisher.
The top-performing ASX-listed life science stock for the Septem-
(partnered to Medigen) in China, South Korea and Tiawan is likely
ber quarter was Eastland Medical (EMS: 3.5 cents) which increased
to have increased investor confidence in the stock.
by 169%. The company has been conducting a trial of a sub-lingual dose form of an antimalarial drug (Artimist), addressing
Other strong performers for the quarter included USCOM (16.5
the pediatric market in Africa. The company completed enrolment
cents; + 76%), Prima Biomed (19.5 cents; +70%) and Medical De-
in its Phase III 150 patient trial and expects to announce results in
Dental products company SDI Limited regained support for its
The worst performing stock in the September quarter was Bone
stock with a 124% increase over the quarter. A 63% increase in net
Medical (0.3 cents), a long standing underperformer. Its shares fell
profit and a 49% increase in EBIT galvanised interest in the stock,
40% over the quarter. An absence of clinical progress in the face
with a 21% growth in US exports also playing a key role despite
of ongoing dilutionary convertible note finance explains in part
the impact of a dollar largely on parity with the US dollar.
Imugene shares surged 113% for the quarter, albeit off a low base,
Shares in Reva Biomedical (68 cents) fell 38% over the quarter.
to finish at 1.7 cents at the close. The company is now a drug
Slower than expected progress in its RESTORE trial and the need
delivery company seeking to commercialise the Linguet sub-lin-
to make improvements to its REZOLVE drug eluting bioresorble
gual assets vended in by Cosegna Group (CGP). Perth-based Forrest
scaffold contributed to price weakness with this stock. (see
Capital was involved with the transaction and restructuring. An-
other company that has been an investment focus of Forrest Capi-tal is Patrys (3.8 cents). Patrys stock rose 73% over the quarter.
GI Dynamics shares fell 35% over the September quarter as the
Patrys completed a placement (last quarter) and and SPP (this
market digested the news that the FDA approved the pivotal trial
quarter) at 2 cents, raising $2.8 million.
of the company’s Endobarrier device but required 500 patients tobe enrolled, a figure higher than the 300-400 estimated in its Au-
Sunshine Heart stock gained momentum in the quarter as new US-
based investors came on board and effectively re-capitalised thecompany. Sunshine Heart is now capitalised at $74 million. Sun-
Bioxyne (3 cents) shares slumped 30%. Athe company reported
shine Heart shares rose 90% over the quarter.
late last quarter that its Phase II trial of H1610V for COPD failed todeliver a positive overall result, although signs of efficacy in a
Shares in Progen Pharmaceuticals increased 86% for the quarter.
population sub-group were obtained. The company is now sub-
Progress in recruitment of the company’s Phase III trial of PI-88
ject to several shareholder actions.
Selected Clinical Trial Developments - Q3 2012
Reported 216 of 390 pts recruited into Phase II trial; 82 pts have received 10 cycles or more treatment
Implanted first patient w ith Novorsorb bioresorbable temporising matrix in flap clinical trial
Reported 12 out of 24 implanted in VAC trial; one pt w ithdraw n due other issues
Enrolment completed in Phase II open label trial; 150pts; 28 day follow up
Received FDA authorisation for 500 pt, 25 site, trial of Endobarrier in obese pts w ith diabetes
Completed enrolment in first part of feasibility trial; 26 pts of 50 pts. No major
adverse coronary events reported to date.
Enrolled 150 pts in Phase II PATRON trial;500 pts, 23 sites in Taiw an, China and South Korea
DIABECELL (encapsulated porcine islet Reported results from NZ Phase I/Ia trial; 14 pts; 1 dose; stat. sig. reduction in
unaw are hypoglycaemic events at doses of 5,000 and 10,000 IEQ/Kg
DIABECELL (encapsulated porcine islet Argentine Phase I/IIa trial; 8 pts; 2 doses; informal analysis reveals reductions in
HbA1c, unaw are hypoglycaemia and insulin dose
Reported 40% of patients in dosing in IMAGINE trial; 40 pts; 3 pts reached 24
Reported 14% of patients in dosing in Reach2HD trial; 100 pts
Reported 100% and 90% enrollment in tw o concurrent Phase II trials of Vivagel
for the treatment of bacterial vaginosis; each trial enrolling ~220 pts
8 pts enrolled in 63 pt (54 evaluable)Phase I study; I pt completed 6 months treatment
Capital Raisings by Australian-listed Biotech Companies Q3 2012
Investment Manager or Investor
Type of raising
Funds raised ($M)
Total raised in Q3 2012
Total raised in Q2 2012
Total raised in Q1 2012
Total - 2012 (CY YTD)
ASX Listed Life Science Stocks – Capital Raised by Quarter – 2007 Q3 - 2012 Q3 ($M)
2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012
Bioshares Model Portfolio (28 September 2012)
Portfolio Changes – 28 September 2012
Allied Gets Approval for CardioCel Under Authorised Prescriber Scheme
Allied Healthcare Group (AHZ: 2.3 cents) has been granted ap-
DNA Vaccine Program
proval for use in Australia of its CardioCel product under an Au-
Allied has also invested in a DNA vaccine program, in a company
thorised Prescriber Scheme. CardioCel will be used for the repair
called Coridon. It currently has a 44.4% stake in Coridon and will
of congenital heart defects, usage supported by positive 36 month
be looking to increase its stake to over 50%. The first clinical trial
safety and efficacy data from a pediatrics trial in South Africa.
is expected to start late this year or in early 2013, using a vaccinefor the prevention and also treatment of the herpes virus (HSV2).
The first hospital to be able to access the new product is theMater Hospital in Brisbane, following an application by surgeon
Management and Board
Tom Karl, who is also a scientific advisor to the company.
Peter Turvey, formerly a senior executive with CSL, has joined theboard of Allied Healthcare Group. Allied has built up its manage-
In June this year the company filed the product for approval in
ment team as well, adding former Avexa CEO, Julian Chick, as
Europe via a CE Mark application. The company is also seeking to
Chief Operating Officer and former Clinical Cell Culture CEO, Bob
gain marketing approval in Australia and is expecting to finalise its
Atwill, as CEO of the company’s regenerative medicine business.
FDA submission towards the end of this year.
Existing cardiac patches sell for between $500-$750, and the com-
For FY2012, Allied generated revenue of $6.4 million from its oper-
pany will be looking to charge a premium once it receives market-
ating businesses which sell medical equipment products in Aus-
tralia. The net loss for the company was $10.2 million, which in-cludes a $5.4 million impairment of goodwill following the acquisi-
Use in repairing heart defects is only the initial application. Other
tion of bioMD. Its net cash outflow for the year was $3.5 million.
applications being investigated include pelvic floor reconstruc-
The company had just over $2.0 million in cash at the end of June.
tions, hernia repairs, and a major area in heart valves. In July this
Allied is capitalised at $18 million.
year, the company signed a research collaboration with CSIRO tolook at using its ADAPT treat tissue scaffolds as a delivery vehi-
recommendation: Speculative Buy Class B
cle for adult mesenchymal stem cells in the area of heart failure
The company’s ADAPT technology is a process by which animaltissue is re-engineered for implants in people. The company hasshown that its process delivers a lower calcification rate, allowingtissue flexibility to be maintained.
The Australian Listed Life Sciences Sector
September 28 (September 30), 2012: Capitalisation $42.3 billion, 96 companies
Bioshares Large Cap. Index
Change - Change -
Manufactures pharmaceutical products including vaccines
Manufactures diagnos tic and treatment equipment for
Pharmaceutical manufacturing and wholesaling
Change - Change -
Developing therapies based on mesenchymal pre-cursor
stem cells, with applications in cartilage regrowth and heart
Developing a mechanical heart pump (LVAD)
Developer of the transdermal drug products Axiron,
The company's core technology uses radioactive particles to
irradiate tumours in the liver. Approved for use in most major
Manufactures vitamin, mineral and herbal supplements and
skin & hair products in Australia and N.Z.
Developer of pharmaceutical applications of chemical
Markets the lung function test, Aridol. Bronchitol, for the
treatment of treat cystic fibrosis, now approved in Europe.
Developing a bioresorbable coronary stent
Commercialising the Endobarrier, an implantable polymer
liner for the management of obesity and diabetes
Change - Change -
Biopharmaceutical company with a revenue generating
product, generic fondaparinux. Lead product HA-Irinotecan in
a pivotal Phase III trial for colorectal cancer.
Development, manufacture and commercialisation of a range
of in vitro diagnostic tests for point-of-care us e
Developing drugs to treat cancer and CNS diseases, and has
also developed a gene diagnostic for epilepsy.
Developing a novel disinfection technology, the first product is
a point of care ultrasound probe disinfection unit
Commercialising a platform technology (alpha-tocopherol)
that improves the delivery of pharmaceutical and other
Developer of anti-infective drugs, including the flu drug
Relenza. Inavir, developed with Daiichi Sankyo, a long acting
Developing a 'dual opioid' drug to treat moderate to severe
Development and production of omega-3 food additives from
Developing the C-Pulse heart assist device. The C-Pulse
wraps around and compresses the aorta, increasing blood
Developing drugs to treat CNS diseases such as Alzheimer's
Developing the VitroGro product for ulcer and wound healing
Commercialising the Penthrox inhaler for temporary pain
relief. Used widely in ambulances across Australia.
Developing an improved dosing anti-fungal drug, Subazole
Developing an analogue of the alpha-MSH protein, named
Provides DNA paternity testing services and holds broad
patents relating to the use of non-coding DNA.
Developer of a biological coatings technology that can be
applied to immunoassays, bio-separations, drug delivery and
Developing a bladder cancer treatment and food safety
Developing drug delivery technologies, with a special focus
Change - Change -
Markets an oral device for the treatment of sleep apnea and
Developing the CINCOR system to limit the incidence of
Develops devices that aid the diagnosis of secondary
lymphoedema, muscle wasting and other disorders
Marketing cognitive performance diagnostic products
Manufacture & distribution of amalgam (fillings) & other
dental materials and product R&D.
Developing antisense compounds to treat multiple sclerosis
Developer and manufacturer of biopharmaceuticals.
Company is based in Singapore and was spun out of Sonic
Development, manufacture and distribution of prescription
and OTC medicines as well as complementary and
alternative medicines, dietary supplements and health foods
Development and commercialisation of functional brain
Formerly Cbio. Evelauating Xtoll biologic for lupus and
developing an approved heart drug, Nadalol, for COPD and
Development, manufacture and commercialisation of a
Developing the anti-malarial product ArTiMist.
Developing a cancer treatment based on the application of
Develops and distributes medical devices such as safety
equipment to prevent needle stick injuries and sterile
Developing human antibody therapies for the treatment of
lung, pancreatic, gastric and colon cancers
Diversified medical products group. Investor in Coridon, a
Manufacturer, marketer and distributor of a range of over the
counter (OTC) pharmaceuticals, complementary medicines
Developing cell therapies for diabetes, haemophilia and
Change - Change -
Developing drugs , including antibodies, around the VEGF C
Manages liver treatment centres in Asia. Not previously
included in these tables. Made a backdoor listing through
Developing transdermal drug delivery technologies
Holds a 100 % stake in PolyNovo, a polymer chemistry
A developer of cancer therapeutics, including PI-88 and
R&D company focusing on gene silencing, specifically DNA
Develops, manufactures and markets solid state ophthalmic
lasers used to treat secondary cataracts and retinal
Manufacture of confocal microscopes for clinical diagnosis
Provides specialised storage services, especially for
Developing complementary medical compounds called
Bioeffectives. Suspended from trading.
Developing peptide compound libraries for use in human
Developing compounds to treat HCV and HIV.
Asset development company, with interests in Vibrovein,
Linguet, BreatheAssist and Aspen Medisys.
A medical devices company that has developed a retractable
Develops, manufactures and distributes advanced molecular
diagnostic tests, with a particular focus on women’s health.
Develops, manufactures and markets sleep diagnostic and
Marketing a non-invasive heart output function monitor
Manufacturer of pharmaceutical ingredients to international
standards for major pharmaceutical groups.
Change - Change -
A nuclear medicine company that markets the Technegas
Markets the SphygmoCor device, a noninvasive technology
that provides information regarding the functioning of the
Respiratory and pulmonary devices company. Recently
Developing therapies that target the midkine protein. Recently
launched a range of hair loss products.
Rolling out tissue banking services in Australia and Asia
Developing analogues of naturally occurring phenolic
hormones to treat cancers and other conditions.
Sales and devlopment of hyper-immune bovine colostrum
Manufacture and sale of protein separations technologies
Focused on the development of LAIV influenza vaccines
Manufacture and supply of medical devices and equipment.
Not previously included in these tables. Previously known as
Developed the MicroStreak technology for the automation of
microbiology laboratory processing. Now developing an
Automated Optical Plate Sorting s ystem.
A developer and manufacturer of prosthetic implants and
Developing an immunotherapeutic (HI164 OV) to treat COPD.
Now a drug delivery technology technology company. Has
Marketing the FerriScan technology, a non-invasive tool for
Early stage developer of antibiotics that show activity against
Has developed a novel technology for the extraction of
Developing a compound to treat Hepatitis B, AGX1009. Also
seeking a partner in China to develop Thromboview, an
Focusing on pain drug development following management
Change - Change -
Acquired Biohealth, a complementary medicines company
Developing treatments for bone and joint degenerative
diseases such as arthritis and osteoporosis.
Developed retractable syringe technology and other safety
Detecting novel functions of known and new protein and
Developing novel modular cardiac catheters for the diagnosis
Listed Biotech Investment Funds or Companies
Change - Change -
The entity is engaged in the orderly sale of assets.
Capitalisation Total - All
The 3rd Australian Small Caps Conference
The 3rd Australian Small Caps Conference is being held
in Melbourne at the Sofitel on Collins on Tuesday the
16th and Wednesday the 17th of October.
Bioshares subscribers can obtain a discounted registra-tion to attend the conference.
To register, subscribers should to go towww.microcapconferences.com and enter the discountcode of BIOSHARES2012.
Bioshares subscribers will be able to attend the confer-ence for the discounted fee of $375 (inc GST), a savingof $220 off the normal registration fee of $595.
Registration includes attendance at the two day confer-ence, all catering, networking drinks held at the conclu-sion of each day, as well as conference program andinformation on the companies presenting.
How Bioshares Rates Stocks
For the purpose of valuation, Bioshares divides biotech stocks into
Stocks without near term positive cash flows, history of losses, or at
two categories. The first group are stocks with existing positive cash
flows or close to producing positive cash flows. The second group arestocks without near term positive cash flows, history of losses, or at
Speculative Buy – Class A
early stages of commercialisation. In this second group, which are
These stocks will have more than one technology, product or
essentially speculative propositions, Bioshares grades them according
investment in development, with perhaps those same technologies
to relative risk within that group, to better reflect the very large
offering multiple opportunities. These features, coupled to the
spread of risk within those stocks. For both groups, the rating “Take
presence of alliances, partnerships and scientific advisory boards,
Profits” means that investors may re-weight their holding by selling
indicate the stock is relative less risky than other biotech stocks.Speculative Buy – Class B
These stocks may have more than one product or opportunity, and
may even be close to market. However, they are likely to be lacking
Stocks with existing positive cash flows or close to producing positive cash
in several key areas. For example, their cash position is weak, or
management or board may need strengthening.
Speculative Buy – Class C
These stocks generally have one product in development and lack
Speculative Hold – Class A or B or C
Pharmaxis, Starpharma Holdings, Cogstate, Bionomics, Biota Holdings, Impedimed, QRxPharma,
LBT Innovations, Mesoblast, Tissue Therapies, Viralytics, Phosphagenics, Immuron, Phylogica, Bluechiip, pSivida, Antisense
Therapeutics, Benitec BioPharma, Allied Healthcare Group, Genetic Technologies, Calzada, Bioniche, Atcor Medical, Invion
Disclaimer:Information contained in this newsletter is not a complete analysis of every material fact respecting any company, industry or security. The opinions and estimates herein expressedrepresent the current judgement of the publisher and are subject to change. Blake Industry and Market Analysis Pty Ltd (BIMA) and any of their associates, officers or staff may haveinterests in securities referred to herein (Corporations Law s.849). Details contained herein have been prepared for general circulation and do not have regard to any person’s orcompany’s investment objectives, financial situation and particular needs. Accordingly, no recipients should rely on any recommendation (whether express or implied) contained in thisdocument without consulting their investment adviser (Corporations Law s.851). The persons involved in or responsible for the preparation and publication of this report believe theinformation herein is accurate but no warranty of accuracy is given and persons seeking to rely on information provided herein should make their own independent enquiries. Detailscontained herein have been issued on the basis they are only for the particular person or company to whom they have been provided by Blake Industry and Market Analysis Pty Ltd. TheDirectors and/or associates declare interests in the following ASX Healthcare and Biotechnology sector securities: ACL, ACR, ADO, BTA,CGP, COH, CSL, MYX, NAN, IDT, IMU,IPD, PXS, SOM, SPL, TIS, UBI. These interests can change at any time and are not additional recommendations. Holdings in stocks valued at less than $100 are not disclosed.
Subscription Rates (inc. GST)
48 issues per year (electronic distribution): $375
For multiple email distributions within $590
To subscribe, post/fax this subscription form to:
PO Box 193 Richmond VIC 3121
Fax: +61 3 9329 3350
I enclose a cheque for $
made payable to Blake Industry & Market Analysis Pty Ltd
Please charge my credit card $
SPHYGMOMANOMETERS AS A RESERVOIR OF PATHOGENIC BACTERIA Authors: M.A. Beard, A. McIntyre, P.M. Roundtree OBJECTIVE: The purpose of this study was to identify the type and level of the bacterial contamination of sphygmomanometers in use week and sampled at 0, 24 and 48 hours after introduction. Three sites on the cuff were sampled each designated as high, medium, SUMMARY: The b
[email protected] LES ANTI-INFECTIEUX II. ANTIBIOTIQUES A. Les pénicillines B. Les macrolides 1. Inventaire 2. Spectre bactérien 3. Pharmacocinétique 4. Indications et contre-indications 5. Effets indésirables 6. Interactions médicamenteuses LES ANTI-INFECTIEUX II/A/3. Les pénicillines du groupe A L’ampicilline TOTAPEN® → problèmes d