Xcounter Share Discussion Threads

[hedgehunter] 05/2/2006 13:59

Business



The Times February 02, 2006


Biotechs back in favour with investors
By Richard Irving



THE fledgeling biotech sector burst to life yesterday as shares in the first two drug developers to raise money on the London stock market this year jumped to healthy premiums.



Tom Francke, a Swedish rocket scientist, crystalised a paper fortune of just under £1.5 million after shares in his company, XCounter, soared by 25 per cent on the first day of dealings to close at 195p.

Mr Francke, an astrophysicist who helped Nasa to design deep space probes to examine "Big Bang" theories, runs a company that is developing new digital three-dimensional X-ray machines using very low doses of radiation. The shares jumped 40p, making it one of the most successful biotech floats since the collapse of the hi-tech bubble in 2001.

[hedgehunter] 05/2/2006 13:56

Cracking debut for XCounter
Date: Wednesday 01 Feb 2006

LONDON (ShareCast) - XCounter, a Swedish company that develops novel technology for capturing 3D digital medical X-ray images, soared more than 25% on its AIM market debut today.

The Stockholm-based group, founded in 1997, raised £16m from a placing at 155p per share, but watched its shares rally to 194.5p in little more than an hour.

Its first product is for digital mammography for breast cancer screening, which will be followed by two products in development for general body and cardiac imaging.

XCounter's technology enables the production of 3D images at lower levels of radiation dose, with higher image quality and at a competitive production cost compared to current 3D technology.

The company, run by Swedish rocket scientist Tom Francke, reckons its technology has the ability to transform the current multibillion dollar digital X-ray imaging market.

The proceeds of the placing will be used to complete the development and initial manufacture of beta units of the mammography and develop general body imaging systems, as well as the initial development of the cardiac imaging system.

The company said it also requires general working capital to fund the business prior to completion of partnering discussions.

[hedgehunter] 05/2/2006 13:45

I understand New Issues as tipped this one in the last few days, anyone have the article?.

[hedgehunter] 04/2/2006 06:28

Well it finished up on the day.

Just waiting now for the tip sheets, IC and shares mag and all that lot.

[hedgehunter] 03/2/2006 12:06

Rather volatile this one on its first few days, mind theres a lot of interest with it being Digital and all.

[hedgehunter] 03/2/2006 00:21

Well you certainly appear to know your stuff, again many thanks and good luck with your project.

cheers hedge.

PS, if you come up with any more info pluses or minuses please keep us informed.

[lordcoco] 03/2/2006 00:16

No worries HH.

I'm really not that much "in the know", just a beginner. It is a very interesting market though.

[hedgehunter] 03/2/2006 00:03

The Swedes always seem to make good business men and women.

[hedgehunter] 03/2/2006 00:02

Many thanks for that post Lordcoco it really is appreciated when someone 'in the know' makes a valid contribution like that, especially on the tech side of things. Very much appreciated again.

cheers Hedge.

PS, seems that everything that is digital now just takes off.

[lordcoco] 02/2/2006 23:55

On the face of it the valuation looks extremely high to me as they have yet to produce anything much, but the market is indeed massive and the technology is almost certain to replace current x-ray practice over the next few years.

I think the process xct use involves noble gases whereas other companies working in the field of tomosynthesis (digital 3d breast mamography) use ccd type devices to capture the info from the x-rays.

The jury will be out on the crucial verdict imo until xct have produced images from trials on women using their method/equipment. As far as I am aware so far they have only produced an image from a dead rabbit!? (which apparently is a bit blurry). I also believe that they do not write their own software or indeed have the software to reconstruct the images from the raw data as of yet.

They will also need to get a model ready for market pretty quick as I think GE are set to launch later this year and I think Seimens and Hologic are not far behind. They will then need to show that their image capability is at least as good as the competition and that they can indeed be competitively priced.

As far as I can tell the full body scan should not be hard for any of their competitors to achieve with modifications to hardware and software etc. The moving heart thing sounds much more interesting as that would be a real breakthrough but it sounds like they are some way off achieving that - comes across as more of an idea.

The rest of the business plan is what you would expect from anyone entering this market imo.

Would not be suprised if this motors along though as there is or will imo be a real buzz around 3d mamography in the coming months/years and anyone who potentially offers a footholod into this multi billion market will probably be jumped on quickly.

As for radiation dose - the other forms of tomosynthesis already use far lower doses than conventional x-ray so not sure this is a competitive advantage.

[hedgehunter] 02/2/2006 23:25

Well didnt finish far off intra day highs.

[hedgehunter] 02/2/2006 13:41

Anybody know if this one as been tipped?.

[hedgehunter] 02/2/2006 13:40

Volatile at the moment, looks like its already been tipped somewhere.

[hedgehunter] 02/2/2006 13:33

XCounter AB (publ) develops fundamentally novel technology for capturing digital X-ray images, enabling production of 3D images at low levels of radiation dose.

Founded in 1997, XCounter's Technology ('XCT') enables production of 3D images
at lower levels of radiation dose, with higher image quality and at a
competitive production cost compared to current 3D technology. The Company's
first product is for digital mammography for breast cancer screening. The next
two products in development, both further applications of XCT, are for general
body and cardiac imaging. The Directors believe that XCT has the ability to
transform the current multibillion dollar digital X-ray imaging market.

Company Background

XCounter is based in Stockholm, Sweden and was founded in 1997 by Dr Tom Francke, the Company's Chief Executive Officer, and other researchers with experience from NASA and CERN in the fields of radiation instrumentation development and space research.

XCounter's technology ("XCT") enables production of 3D images at lower levels of radiation dose, with higher image quality and at a competitive production cost compared to current 3D technology.
XCounter has developed, and tested on patients its first product, the XC Mammo-3T, for breast cancer screening. The tests confirm the XCT's ability to produce high quality 3D images with a lower radiation dose in the patient than film X-ray.

The Directors believe that this product should enable better, safer and earlier diagnosis of breast cancer as well as fewer recalls in screening programs.

The Company's second product in development is the 3D general body imaging product, the XC MP-3T. It has been designed to have the ability to generate 3D images of any organ in the body at a substantially reduced radiation dose compared to CT. The Directors believe it will be able to capture smaller details and be produced at a comparable production cost to current 2D systems.

Future products include the XC Cardio-4T, an innovative imaging system for viewing the beating heart as a moving 3D image.

The Company's commercialisation strategy is to enter into licensing/ development agreements with its future customers, the leading marketing and distribution companies of X-ray systems.

Future revenues will be generated through contract development of novel products, production of beta-series imaging systems for upfront and milestone payment and royalties on sales of products sold by commercial partners.

Placing Details

At the placing price of 155 pence per share, £16million before expenses has been
raised on behalf of the Company via an oversubscribed Placing.

The net proceeds of the Placing will be used to complete the development and
initial manufacture of beta units of the mammography and develop general body
imaging systems, as well as the initial development of the cardiac imaging
system. The Company also requires general working capital to fund the business
prior to completion of partnering discussions.

The ordinary shares will be admitted to AIM in two tranches. Following the
admission of the second tranche on 8 February, the market capitalisation of
XCounter at the placing price will be approximately £55 million.

Placing Price 155p
Number of Ordinary Shares placed on behalf of the Company 10,322,903
Number of Ordinary shares in issue on 2nd Admission (8 February) 35,894,747
Percentage of Enlarged Share Capital placed 29%
Market Capitalisation at the Placing Price £55.6m

Financials



Broker And Adviser

Nomura Code Securities Limited is acting as Nominated Adviser and broker to the
Company.

Company Website



Please DYOR on this company and remember do not use money to invest that you cannot afford to lose.