Newsflash for the Snoozers - Part 18

Monday, 11th July 2016 09:48 - by Moosh

Cyprotex (CRX)  - A flurry of new developments has come from the company recently, including the launch of an endocrine disruption service and a new advanced 3D cardiotoxicity model. These arrive after previously mentioned new service offerings and are being noticed by the market, and notably by the major shareholders – R Sneller and D Ingram – both have added to their shareholdings in recent weeks and I feel this to be a very positive sign.

 Juniper Pharmaceuticals (NASDAQ: JNP)

Over the last few months, JNP has boosted their manufacturing capabilities in its Juniper Pharma division following a bullish first quarter set of results, the latter benefitting from the approval to sell Crinone in a number of European countries which came about at the end of 2015. Last week Merck KGaA  (Germany), which has non-US worldwide marketing rights to (One)Crinone, received regulatory approval to sell OneCrinone in Japan and this was well received by the market since Japan is the third largest pharmaceutical consumer so this will open up a new revenue stream for JNP, via its sales to Merck KGaA. The company also advised the market that it has completed its enrolment for its current COL-1077 10% lidocaine vaginal gel Phase 2b clinical trial and the results are due to be released during the third quarter of 2016. This follows a recently published paper on the results of Phase 1 clinical trials of COL-1077. My standard fair value price for holding pharmaceutical companies is based on a price per share which is at most 3x annual revenue, therefore at market close of just short of $8 on 8 July 2016, and based on full year revenue to year end 31 December 2015, there is still headroom above the current price. With the uplift in revenue already this year based on first quarter results, as well as the recent approval of OneCrinone in Japan, there is scope for further moves up in price over the coming years, and that’s not even taking into account any positive trial results from COL-1077. In any case, I am a keen holder of JNP and look forward to the trial results by the end of Q3 2016.

Orosur Mining (OMI)

OMI has had a recent uplift in price since my last mention of it in a Newsflash and I previously mentioned the net asset value of 23p per share. Those on the ball will have noticed that this has been a sentimental rise in line with a rising gold price, which was given a major boost following the Brexit result since investors tend to seek gold as a safe haven investment at times of economic uncertainty. Fundamentally, OMI has kept tight controls over its costs over the last few years and management has successfully guided the fundamentals through the storm and hopefully the recent surge in gold price will have strengthened OMI compared to previous years. Historically OMI has given full year results around mid-August so with the price (market close 17.625p mid-price, 8 July 2016), still at a discount to the net asset value of 23p then the results will be the obvious next piece of news to keep the attention of investors.