||EPS - Basic
||Market Cap (m)
|Pharmaceuticals & Biotechnology
Real-Time news about Pharmagene (London Stock Exchange): 0 recent articles
|gb2005: so you have sold out? Is there a thread for Asterand. Share price rosen today by 10%|
Depends. Has anyone asked them how PGN will be listed after the merger? Surely this will have a huge impact on how people vote. The other company is not listed, so surely them changing their name to PGN and keeping the UK listing and adding a Nasdaq listing would be the smartest move, in which case I see good things for the share price.|
|jimmy cricket: Anyone hazard to guess what this will do to the share price?|
I don't currently own any, but am always keeping an eye on all of them.
Technically I would be tempted to buy some at 21p.
Fundementally it is almost trading at it's cash level (20p), so that is always a big tick in my box. It could get to a point where a larger company could literally buy it risk free.
There are several possibilities for takeovers from:
Vernalis (how have expressed a desire for such purchases so good bet)
Very early stage products, with only one past preclinical. Have said that the progress made on PGN0052 doesn't seem to be priced into the current share price, so you would be basically be getting that for nothing if you bought now.
As a non holder I would be tempted to watch this one for a while and buy it at anything below 22p.
See my thread on investing in Biotechs:
|witteklip: Now that Riddell run off with his tail between his legs perhaps PGN has a better chance... Riddell's speculative gamble on the two new drug prospects failed and sent the share price tumbling. With the base for a sound company and a lesson for prudence to new management.
This company is now selling at a discount to its assets which is ironic since the one of its biggest problems has gone and positive things are already afoot.
Cash PS 29.20
Net Cash PS 21.71
Net Tangible Asset Value PS * 28.48
Net Asset Value PS 28.48
"In an AGM statement, chairman David Lee said in the year to April 2005, new
orders amounted to 1.3 mln stg, equal to the value of all new orders received in
At end April, the Drug Discovery Services sales order book stood at 3.3 mln
Lee said a series of initiatives have been implemented to increase the scope
and value of the Drug Discovery Service offerings and that new product offerings
will be launched in the second half of this year.
The company's headcount has been cut by 16 pct since June last year.."
Looks good to me - Any one else keen on on this share or have any concerns?|
|witteklip: But in the meantime - the directors keep printing more shares for their "Share Option Scheme".
"Period of return: From 1 July 2004 to 31 December 2004: Number of shares issued/allotted under scheme during period: 600,000"
+/- 1.2 million shares per year amounts to around 1.12% of the equity and may not seem like a huge quantity but bear in mind that this was worth around £3.42 million not so long ago when the company was issuing shares to investors at 285p per Ordinary Share. Assuming the underlying value of the company is sound then consider the 'value' these folks are pocketing.
Should directors be benefiting personally from investors money without producing a return? How can they justify rewarding themselves like this when they are essentially burning investors funds and the share price is at a fraction of what it was when the money was raised?
An industry commensurate salary is more than enough for these incompetents - they should not be allowed to dilute shareholders holdings further for their own gain when the share price is so weak. They have presided over the devastation of share values and failed to even break-even.
Regardless of how modest they might claim this dilution to be - this practise should be made illegal and those who have benefited held accountable.
Of course they will argue that the share options are 'incentives' and based on 'targets' and that the payments are in lieu of justifiable remuneration... Twaddle - in my view insiders are lining their pockets without justification.
If you are a shareholder and agree with my personal view then - check the facts and write to the self satisfied man who runs this company and asking for justification - copy your complaint to the regulatory authorities.
PS - These are my personal opinions - Please do your own research and come to your own conclusions before accepting anything here as fact - I do not want to be sued - they'll probably use more shareholders funds! :)|
|witteklip: For the record - I'm still anti-Riddell.
The Sunday Telegraph / The Equity View:*Buy Pharmagene (PGN.L) at 36.5p
Well - what sort of advice is that from the ST paper when PGN was already selling at plus 40p on Friday?
I suspect the share price falls were essentially artificial in respect that the majority of shares are held by big players who aren't trading - it's the smaller speculators who got spooked out of this and sent the share price reeling on miniscule volumes. Now it seems that someone is mopping up the spilled gravy (not much to mop up but enough to firm the price considerably again on fairly low volume)
I guess the ST was talking about trebling sales from their services division - (Can anyone fill me in? / I don't read it) Sales have been growing year on year and as a stand-alone outfit would even now be self sufficient and profitable. I think Riddell is looking for something even more spectacular and quick - i.e. a substantial revaluation on the back of the two new drug prospects - He's got the backing of the big investors who have the majority of the shares - and it is obviously super confident that he's going to pull something off otherwise he'd be a little more careful with our money and humble in his dealing with his little guy shareholders.|
|egotrip: Technicals looking strong. The share price is above 20d, 50d, 100d and 200d moving averages and has broken out of a 22p-30p trading range over the last 180 days. The average volume has also risen over the last 15 days though this looks like a very illiquid stock.|
|divina: Could become take over tarket with tehre MILLIONS Cash Pile
The long-awaited consolidation in the distressed biotechnology sector kicked off today as Cambridge Antibody Technology unveiled an all share acquisition of Oxford Glycosciences.
Although pitched as a merger the deal is effectively a takeover by CAT which will use Oxford's cash pile to support its drugs pipeline. Under the terms of the deal CAT will offer 0.362 new shares for every existing OGS share and its shareholders will end owning 64.3% of the enlarged company.
The new company will be based in CAT's Cambridge headquarters and its management are firmly in the driving seat. CAT chairman Peter Garland will chair the enlarged group and chief executive Peter Chambre and chief financial officer John Aston will keep their posts.
OGS' chief executive David Edsworth will become a non-executive director after helping oversee the integration, which will involve job cuts on both sides. Chief medical officer Chris Moyses and chief financial officer Denis Mulhall will not make it to the board but will be invited to join the executive committee.
Based on yesterday's closing price of 540p the merger values OGS shares at 195.5p, a 43p premium to yesterday's close.
In take over style CAT's shares have fallen 28p to 512p and OGS have made a 41p rise to 193.5p, 8.2p over the offer price implied by CAT's current share price.
All OGS directors have made an irrevocable undertaking to accept the offer except for Dr Donald Drakman who kept out of talks due to concerns about competition between CAT and the part of OGS he runs.
Institutional shareholders Fidelity Investment and Invesco Asset Management, which own 28.7% of OGS' issued share capital between them, have also given their support to the merger.
This includes AAA-rated fund manager Neil Woodford who holds 2.2 million OGS shares or 4% of the company in his Invesco Perpetual Income unit trust.
The rationale behind the merger is to create a better-funded group which will hopefully be cheaper to run - cost savings of around £10 million are expected in the first year - and have a stronger development pipeline.
Other cost savings are expected to come from a review of the companies' portfolio of drugs which will identify in November which R&D projects the group will focus on and which it will drop.
Analysts are lukewarm about the deal although they recognise the companies make a pretty good fit and with net cash of over £260 million will be in a strong position to consolidate the sector further.
On the product front, OGS' proteomics work identifies proteins involved in diseases which CAT's antibodies can be used to find treatments for.
Karl Keegan, biotech analyst at Banc of America, believed the deal was the first in a series as CAT seeks to transform itself into a 'fully-fledged biopharmaceutical company'.
He added: 'In itself, this deal is not enough, but if it is followed by further deals, for companies in products, then real value may emerge in the medium term.'
Julie Simmonds of Evolution Beeson Gregory echoed this saying there were still gaps in CAT's strategy.
Simmonds highlighted British Biotech (BBG), Oxford BioMedica (OXB) and Pharmagene (PGN) as other cash-rich biotechs which could now be targets.Citywire Verdict:
Despite the hullabaloo over biotechnology in recent years, investors have struggled to find make steady returns from the sector.
Today's deal signals that a period of restructuring is on the cards. Given the lousy state of the market, concerns about companies' finances and the breadth of development pipelines, any attempts at consolidating this fragmented area are welcome.
Change is afoot and shrewd investors are moving, for example at Pharmagene, where earlier this month we noted some interesting stake building. But don't expect a wave of M&A overnight. Pharmagene and the other stocks highlighted by Julie Simmonds are all flat today|
|nigel_s: I don't hold these at the momment, but have unsuccessfully held in past. I work for a major pharma, and I can see the potential for what PGN are doing. I might be tempted back in soon, but the spread on them is crippling so too risky I feel - the price has to rise 20% + to break even with charges, and if it moves the other way.... :-(
But as you said above, cash burn seems to be the issue behind the recent share price fall, and was summarised nicely in the Telegraph yesterday.
Pharmagene is one for the brave
When a company is valued at less than the amount of cash on its balance sheet, you might think it is second nature to rush in.
At Pharmagene, however, investors have been holding their horses. Yesterday, it announced three deals in Japan and the price didn't move. This year, it has fallen from a high of 112p to yesterday's low of 41.5p.
At this level, it is capitalised at £21.8m, compared with cash, at the latest count, of £34m. Pharmagene tests drugs on human tissue, and also has its own migraine drug in Phase II trials.
The company had an inauspicious start to its life, with the shares collapsing after being issued at 285p. At the end of 2000, it announced a change of accounting policy, which analysts said would have no material effect on the company. However, the price collapsed to 115p and has gone downhill ever since.
Yesterday's collaborations were more of the same for the company, straight fee-for-service deals where the clients' compounds are tested on Pharmagene's technology. The problem is that they are all relatively unknown companies among investors, and Pharmagene needs a bigger fish - like its deal with Bristol Myers Squibb - to help revive sentiment.
Meanwhile, analysts are worried about how much cash the company will need to get its migraine product, R52, to a stage where it can be outlicensed to another company. The product is likely to eat money in the clinical stages. Analysts aren't looking forward far enough to see when the company will become profitable.
That is why investors have been wary of buying into the Pharmagene story, despite its excellent cash position. However, there's further positive newsflow to come, so risk-loving punters might want to take a look.|
Pharmagene share price data is direct from the London Stock Exchange