whatshot comment from advfn21 Jun 2011 17:07
AGI Therapeutics (AGI) - Trading below net cash
Drug developer AGI Therapeutics is currently valued at £2.6 million, well below its cash pile of $10 million (as at 31st December 2010). The firm concentrates its efforts in the area of specialty indications with unmet medical needs, with particular focus on treatments for conditions which qualify for Orphan Drug status (i.e. those drugs that are applicable for significant competitive advantages such as exclusivity periods, mainly due to the critical nature of the disease). The firm recently identified a promising new lead product candidate, AGI-350, (described as "a novel presentation of an existing marketed drug which AGI will develop to treat a significant unmet medical need in the critical care setting") for which a programme of pre-clinical testing has commenced. "AGI-350 is specifically formulated to allow effective and efficient delivery of the drug directly to the lung to treat a life-threatening, lung-related, condition. There are currently no formulations of the drug available for inhaled delivery, and AGI believes that AGI-350 will represent the first such approved use of the drug to treat the target critical care population." There are currently major changes underway in the pharmaceutical industry, notably the reduction in large pharma R&D budgets, that will see small biotech come under increasing scrutiny, both from the majors and the market in general. Tucking away a few of these might be a very rewarding punt over the next couple of years or so. The cash burn is around $3 million a year so plenty of space for interest to build here.