||EPS - Basic
||Market Cap (m)
|Pharmaceuticals & Biotechnology
Real-Time news about Protherics (London Stock Exchange): 0 recent articles
|rivaldo: Nioe Buy verdict in today's Independent - 300p being suggested for the combined entity?
Our view: Buy
Share price: 152.5p (+1.25p)
Biotech and life science groups are traditionally not the type of companies investors should be buying in a downturn. In good times, such groups can raise money with abandon, pumping more and more into research without ever really having to worry too much about turning good science into profitable drugs. In bad times, however, the sector can become a graveyard of good ideas as investors get more nervous about groups that are great at developing, but not proficient at making profits.
BTG, with good reason, sees itself a different kettle of fish. The good news for investors is it is profitable: yesterday's interim results showed the firm, which specialises in neuroscience treatments, returned a pre-tax profit of £3.4m in the six months to the end of September, which comes largely from licensing deals. While the profit figure was down on the same period last year, it is the recurring royalty revenues from these licensing deals, which jumped by 17 per cent to £24.2m, that the group says is salient.
BTG's shares have soared by 34.5 per cent in the past month, which chief executive, Louise Makin, says proves that investors see the company differently to the rest of the sector. There is probably more than a degree of truth in that, especially as most other biotech groups have struggled to attract buyers in the same period.
The biggest, if unlikely, risk, warns Dr Makin, is not achieving the successful integration of Protherics, an immunotherapeutic group BTG has acquired for £218m. If merged well, the combined company will have an impressive pipeline of deals, with some suggesting a share price of £3 should not be out of the question.
A punt on any biotech firm is a risky investment, but those wanting exposure to the sector could do worse than buy BTG. With £67.5m of cash on the balance sheet and an ambition to hit the FTSE 250, investors could do very nicely. Buy."|
|armistead34: Well, as a new holder, I've been doing some extra homework to answer my own questions by reading posts from this bb over the last two years. Certainly a good bb, and I'm pleased to see Ed Jackson a fan.
Please correct me if any of the following observations are wrong. I'm new on the block - and enthusiastic about what i see!
Lots of common threads with BTG, so familiar territory to me. Lots of cash (c. 36mstg) and money making - if also loss making on account of r&d. Current capitalisation at 123mstg must be ludicrous, as the two lead money earners, crofab for snake bites, and digifab for diogoxin overdoses, alone produce income of around 20mstg, a figure that is growing rapidly (crofab by 17%, digifab by 89% in 2007/8). Furthermore this is to double in 2010, when revenue sharing rights revert to PTI from Nycomed. The case has been made repeatedly on this bb that the current share price is supported by these two products alone, and on the basis of 3* 2010 sales, I'm inclined to agree.
Moreover, under the terms of its existing agreement with AZN on cytophab, PTI is entitled to 160mstg of milestone payments, about 30mstg of which have already been received. This surely lends further strength to its balance sheet.
(Notwithstanding the co. is still loss making because of continuing R&D)
However, that leaves the big ones still to come: namely,
Royalties on Cytofab for sepsis, should it pass stage 3 in 2010, and a similar deal with a pharma major (such as GSK) for digibind/digifab for pre-eclampsia.
(Can anyone here kindly describe the EXACT nature of the relationship between these two?)
Cytophab seems to have equivalent potential to BGC's Varsisolve - ie. a 2bn gross usd market, of which PTI is entitled to 20% of net sales. As MRE has suggested in post 7159, this might be a ball park figure of $100musd pa from 2012. Hence the importance of phase 2a trials this year from AZN. All things being well, stage 2b should commence in the New Year.
I have not of course touched on Voraxase, because I don't quite understand what's going on!
Quite apart from the above, it's good to see the interest of AZN, which is a stake holder as well as a partner; and GSK. I'm surprised that neither ofg these two delivered the final takeover bid, as they're both on the look out for product in rather the same way that oil majors search out new e&ps.
But BGC got in first, and I'm delighted.
All the above VERY likely to contain inaccuracies, and I hope, subject to correction by the many much more learned members of this bb. Goes without saying this carries high risk, particularly in current environment. DYOR!|
|gnnmartin: My guess is that a fair number of people bought into PTI hoping for a cash bid. They just want a return and out, so they are pulling the price down. On the other side, BTG had had a strong run up from 80p to 240p, and there were a lot of people ready to take profits. And in this market, once people start taking profits, you start hitting stop losses, and the share goes on going down.
If PTI and BTG called the whole thing off, I see no reason why PTI shouldn't sink to the price it had before takeover rumours took it up, and then lower still because the market is dire, and nobody like confusion, and anyhow most other things have fallen since then. And again, if PTI and BTG call the whole thing off I don't expect BTG to bounce back. Their bull run has been broken, the domino effect of investors 'protecting profits' (or cutting losses) could well drive the share price further on down. Rational analysis may be trumped by simple fear.
|fhmktg: This received this morning from Nick Staples at PTI, in prompt resonse to a query from me as to whether the company was reviewing the merger in light of curret market conditions.
Thank you for your enquiry.
The recommended offer is for a share exchange ratio that gives us a ~40% stake in the combined entity. This ratio was calculated as you know at a share price of 60p for Protherics, almost a 100% premium to where we were trading prior to announcing M&A interest. We believe the merger enhances the prospects for both companies, both financially and in terms of upside and risk mitigation. Both parties approached their major shareholders for their consent to a merger prior to announcement and the share price has fallen since on only relatively small volumes. We believe the focus should be on the stake in the enlarged company at this stage, given the strong rationale for the merger and the volatility in the markets.
|mre: The PTI share price is now around 45p compared with around 30p before the news was announced on "approaches from a number of parties". So have we really got that much to complain about? Of course 45p may not be the bottom but the BTG share price would have to be around 100p before PTI holders are back to square one.
Just a thought to cheer up any PTI holders feeling a bit let down (like me!).|
|mre: Czar, 255p would raise the effective PTI offer to 74p which would be far better than where we're at now. However this would mean a 54% rise in BTG's share price from today and a 24% rise from BTG's share price used as the basis of the offer. Such rises don't appear realistic to me in such a short time span as when the deal is closed (estimated at early December). Despite my pessimism, I do obviously hope you're right!|
|cortez: Hi DevBod
Just lookin at this deal. Digital Look has 342.2m PTI shares in issue, could you confirm? As PTI get 0.291 per PTI share (in new BTG shares), I make that some 117.6m new shares issued but the offer doc say a max of 105.9m new shares will be issued. Also that BTG holders will now own 58.8% of the new company and PTI holders 41.2%. IF BTG's existing 151m shares account for 58.8% of the new shares base then only some 60m new shares will be issued (40% of 150m). I'm baffled as to how many shares they'll actually be.|
|devbod: The directors awarded themselves options a few months ago at 2p a share. They'll at least get pro-rata compensation with BTG options and at most 58p (60p-2p) a share cash. I just checked the announcement but it says that the options are included in the 'Scheme' but its not clear how the compensation will be doen other than it will be 'appropriate'.
Who gets what job is described in the RNS, there's a lot of detail there if you scroll down past the standard disclaimers.
Although the share price of both companies prior to leaks implies PTI got by far the better half of the deal I'm not happy with the actions of PTI's directors. Cytofab phase II completion in December and Voraxase news could easily have driven PTIs share price back closer to former levels. With any faith in their products and a little less interest in their own pockets PTIs shareholders might have been better served.|
|jackiewilson: Congrats to all who hold - hopefully they will realise a good price for all that pent up technology.
RNS Number : 2944B
13 August 2008
Re share price rise
London, UK; Brentwood, TN, US; 13 August 2008 - Protherics PLC ('Protherics' or the 'Company'), the international biopharmaceutical company focused on critical care and cancer, notes today's rise in the Company's share price and confirms it has received approaches from a number of parties interested in acquiring Protherics, which the board is considering. However, there can be no certainty that any formal offer will be made, nor as to the terms on which any offer might be made.
A further announcement will be made in due course.
In accordance with Rule 2.10 of the City Code on Takeovers and Mergers (the 'Code'), Protherics confirms that at the close of business on 12 August 2008, it has 342,159,034 ordinary shares of 2 pence each in issue and admitted to trading on the London Stock Exchange under the UK ISIN code GB00070290.
|mre: Trying to figure out a reason for the mediocre performance of the PTI share price is futile IMHO. This company isn't going to down the tubes because Brown/Darling change the CGT rules. The fact that a broker reckons the share price should be over a pound is of little importance (how often are they right?). PTI has huge potential, but that's all it is, potential. There's plenty of obstacles in the way of that potential being realised and owning shares in PTI is high risk (again IMHO). Maybe right now the market isn't so keen on buying risk - who knows? There hasn't been any solid news from PTI to reduce the risk factor and there's not likely to be any for quite some time yet. I own a shed load of these and sometimes I do think I need my head examined.|
Protherics share price data is direct from the London Stock Exchange