Newsflash for the Snoozers - Part 17

Monday, 20th June 2016 09:01 - by Moosh

BXP, the consistently growing, profitable, cash and stock dividend issuing generic pharmaceuticals manufacturer gave a market update on 17 June 2016, stating that it has started to export to Kuwait, which is a first for any Bangladeshi pharmaceutical company into the Gulf region. The Gulf market is mentioned to be worth as much as $9 billion, with the Kuwait market alone coming in at ~$1.5 billion.

The initial offerings to Kuwait are amlodipine tablets, salbutamol inhalers, and salmeterol-fluticasone combination inhalers – anyone who has worked in pharmacy will know that these are prescribed at a reasonably high frequency so it is a good base to start with. This new market should boost an already growing export side of the BXP business. BXP is currently undervalued based on both earnings generation and net asset value so the market close ask price of 30p on 17 June 2016 still comes as a bargain to its current fundamental data.

I look forward to further market updates from BXP relating to either new territories entered, as well as further products being exported or launched as this kind of information will be useful for shareholders to see how BXP are committed to providing continuous value for them and the business! There is also a pending set of 18 month results (adjusted for change in financial year) coming in a few weeks so that will be interesting to see how the company’s balance sheet is looking so far in 2016.

Cyprotex (CRX)

CRX has continued to keep the market informed with ongoing developments while it remains in a strategic review period. On 9 June 2016, the company told the market that it has expanded its cell-based services with the addition of a new IntelliCyt iQue Screener – basically, a flow cytometer. This instrument opens up opportunities in immunology-based services, and widens its offerings in its bioscience, phenotypic screening, and in vitro toxicology disciplines. This new technology allows CRX to take a first step into the market of immuno-oncology and antibody discovery.

On 16 June 2016, CRX also launched chemTarget – this is a virtual screening tool for predicting biological target interaction from chemical structure, and it can be used with the company’s existing chemPK package.

There was also some big news from the US in the last couple of weeks – Congress has approved reforms to the Toxic Substances Control Act (TSCA), and this is due to be signed off by the president soon. One important change in the Act is the reduction or replacement of animal testing if a scientifically reliable alternative non-animal testing procedure exists. Fortunately for CRX, non-animal testing methods are what they do and the company has a wide range of non-animal in vitro testing procedures which can be used for testing toxic substances. CRX has also spent much of the last couple of years honing its expertise in the area through expansion of its range of tissue models available. This can only be potentially good news for long term revenue growth for CRX once the industry has had time to process the changes and take steps to making those changes too.

Related Articles:

Newsflash for the Snoozers Part 10 http://www.lse.co.uk/blogs/member/moosh-blog/k7lp9u/

Newsflash for the Snoozers Part 14 http://www.lse.co.uk/blogs/member/moosh-blog/ki6mbn/

Newsflash for the Snoozers Part 15 http://www.lse.co.uk/blogs/member/moosh-blog/x9lij2/

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.