Bioshares Conference highlights
About the author:
- Author name:
- By Scott Power
- Job title:
- Senior Analyst
- Date posted:
- 21 July 2014, 8:08 AM
- Sectors Covered:
- Healthcare, Life Sciences
I'm almost returning from the 2014 Bioshares Biotech Summit. A delayed flight has kept me in Queenstown for another night - oh well, I've been delayed in worse places than this.
Over the last two days I have heard from 15 listed and 6 unlisted life science companies. I've also gained plenty of insight into another 10 or so companies that were not on the speaking list. This was the biggest turn up to this event yet and the mood was buoyant.
Three companies to watch
I expect a number of companies will see their share price increase on the back of either:
- a deeper understanding by investors of the worth of the company/technology, or;
- the approach or achievement of meaningful catalysts.
In my opinion (and assuming the broader market holds together) the following stocks are going to move higher within the short term (one to two months):
I discussed IPD in my previous blog. Investor interest is strong and growing as the importance and value of the ugraded reimbursement code approaches for its technology. I am happy to buy this stock under $0.25. We retain our Add recommendation and share price target of $0.46.
Innate Immunotherapuetics (IIL)
IIL expects its Phase 2b MS trial to start in August - a key milestone. I was reminded that there are only nine approved MS drugs each selling on average around $1.5bn. There are five key pharmaceutical players in the space. I am a buyer below $0.20 and I expect the share price will be above $0.25 when the trial starts. We retain our Add recommendation and share price target of $0.69.
RNO recently received FDA approval for its nasal technology as a medical device - putting more substance behind the product. Recent sales success and penetration looks like continuing on the back of the rollout at Fitness First gymnasiums around Australia. The sleep and snoring product is set for launch in Oct/Nov this year. We retain our Add recommendation and share price target of $0.08.
Watch this space
A number of other companies that presented could be promising longer term prospects. I'll need to do more work on these names and will advise accordingly.
Morgans clients can access our detailed research reports on IPD, IIL and RNO. If you are interested in finding out more, please contact your nearest Morgans office.
Disclaimer(s): Morgans Corporate Limited was the Manager of the IPD share purchase plan in April 2014 and earned fees in this regard. Morgans Corporate Limited was a joint manager to the public offer of shares by IIL in December 2013 and earned fees in this regard. Morgans Corporate Limited was lead broker for the RNO placement in February 2014 and earned fees in this regard.
Analyst owns shares in IPD and RNO.
The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.