BioPharmica Limited (BPH:ASX) – One of the Most Undervalued Stocks on the Australian Stock Exchange
In today’s world economy, continuous business innovation and access to the best business processes and support is a “matter of survival”. Business incubators are programs or entities designed to accelerate ideas and intellectual property through an array of business support services including hands-on management, early stage financing, tech support and office space. Successful completion of a medical corporate incubation program begins with science in a research lab and results in a professional corporate structure in place with all the proper business processes and personnel. This start-up process increases the likelihood that a new company will stay in business for the long term. The overall intent is to transfer technology out of a laboratory and into the commercial sector with a benefit to society while building value for the business.
Many of the leading drugs and diagnostic tests in the world that are owned by the largest healthcare companies were first discovered in a non-commercial research lab. Today, these drugs and these tests constitute billions in revenues worldwide. The MRI (magnetic resonance imaging) and the wonder drug penicillin, were both discovered in a non-commercial research lab.
In the case of Australian Stock Exchange traded BioPharmica Limited (ASX:BPH), plans for the IPO spin off of Molecular Discovery Systems is proof that the Management Team of BioPharmica knows how to progress technology from a research lab into the commercial sector. The current focus of Molecular Discovery Systems is the InCell Analyzer 1000, a high content/throughput cell and tissue based imaging and analysis system. The system’s high resolution imaging and high content analysis can be used to identify a drug’s mechanism of action and can also validate breakthrough biomarkers which could be the basis for new drug targets and diagnostic tests in the future. Under the current offering by BioPharmica, all shareholders who have purchased shares as of December 24, 2009 will get one free share of Molecular Diagnostic Systems for every BioPharmica share that they own COB January 6, 2010.
BioPharmica is also focused on the multi-billion dollar anti-mitotic cancer drug market. Most experts agree that combination therapy is the future for cancer care. Drugs such as Revlimid along with standard chemo drugs combined with anti-mitotic drugs are a lethal combination for many cancer cells. Mitosis is the process by which a cell duplicates its chromosomes which is necessary for all cancer growth. By interrupting this process, anti-mitotic cancer agents become a key component in the fight against cancer. BioPharmica has recently identified new cancer agents that inhibit cell growth while promoting cell death.
BioPharmica’s focus on the cancer therapeutic market has also engaged the company’s research team in the development of a valuable IP portfolio of tumor suppressor genes. The company’s scientific team is currently investigating the suppressor gene HLS5 and its influence on the mutation of cancer cells. These genes are believed to protect normal cells from mutating into cancerous cells. HLS5 may have broad applications in other diseases besides cancer.
BioPharmica’s Diagnostic Array Systems wholly-owned subsidiary is developing the BakTrak system array of diagnostic tests for the detection of respiratory infections. The rapid detection of respiratory illnesses such as TB, Legionella’s Disease and pneumonia is paramount to reducing the spread of infection. The system is able to identify multiple bacterium in a single sputum sample in less than 5 hours. The specificity is between 90-100%. The current system allows most of process to be automated. Future generations of the system are targeting complete automation. The current assay has undergone in-house validation for 16 pathogens.
BioPharmica’s Cortical Dynamic’s investee company is developing the Brain Anesthesia Response Monitor which can have multiple applications in the clinical care environment. The device has applications within the Neurodiagnostics and drug monitoring fields. The current prototype has been built and clinical trials of the mathematical algorithms are in progress.
Finally, BioPharmica has been offered an exclusive option to invest in an unlisted energy company. The option allows BioPharmica to acquire between 9.7% and 19.4% of Advent Energy’s share capital at 50c per share. Advent Energy has an impressive Management Team led by Goh Hock, the former head of Asian operations for Schlumberger. Advent is vigorously pursuing its exclusive option in the exploration of PEP 11 to increase its interest from 25% to 85% in the petroleum exploration permit through drilling a well. Advent is in advanced stages of negotiations with drilling rig providers and intends to spud this well during 2010. Work is now underway to enable an exploration well which will determine whether PEP 11 is home to the next large gas province to be discovered in the world.
BioPharmica continues to partner and to build excellent relationships with several leading Australian academic institutions including Western Australian Institute Medical Research, Swinburne University of Technology and The Royal Melbourne Institute for Technology University. The Company’s impressive product portfolio ranges from early stage clinical research to commercialization of technologies with enormous commercial potential. The Company continues to seek out projects with scientific validity, strong intellectual property positions and large commercial potential.
As of the November 23, 2009 and as of the date that the Notice of the AGM was filed with the ASX, the company had 95,982,300 fully paid ordinary shares. The company also had 12,800,000 options on issue exercisable between 15 and 35 cents with 1,000,000 of those options exercisable at market prices around the time of exercise. In terms of companies valued at less than $20,000,000AUD, shares of BioPharmica remain very undervalued.
BioPharmica’ shareholders will receive a 1 for 1 share spin-out of a new company which will be floated on the ASX. The Company is also developing an impressive portfolio of anti-mitotic drug agents as well as tumor suppressor genes which could be important arsenals in the fight against cancer in the future. The BakTrak System could be an important diagnostic tool in the rapid detection of respiratory diseases. The Cortical Dynamics technology portfolio has multiple applications. Finally, the option to acquire an interest in Advent Energy is not even reflected in the share price of BioPharmica.
BioPharmica’s shares represent one of the most undervalued situations on the entire ASX. The Company owns at least three assets, any one of these if fully developed could far exceed the entire valuation of BioPharmica’s shares in any market. There is a lot going on here but if the definition of invest is to use your money in a way that you believe it may increase in value, then investors may have discovered the Australian definition of invest in the shares of BioPharmica.
Notice: 1800blogger.com, Inc. has been compensated $8,750 by BioPharmica Limited to publicize the BioPharmica (BPH:ASX) story to investors. Please read the rest of our disclaimer which could be found by clicking on the link (disclaimer) at the top of any page on this blog. BioPharmica Limited common stock and the company are not currently registered with the United States Securities and Exchange Commission.
