Thursday, 2 February 2012

The Ultimate TSX Biotech List

After catching EKG's run from the teens to the 40's and witnessing the great run on SBS today, it is obvious the biotech/pharma stocks are the place to be, much like how INT sparked huge gains in SCG, FSW, ISD, DIL and others last year. Biotech stocks are not really my area of expertise so I want to compile the ultimate biotech list with everyone's choices for stocks on the TSX or Venture Exchanges with an eye towards the next huge gainer. I am inviting you to post your picks in the comments section below and if they spark my interest I will look into buying and I'm sure others who see this will too. By the number of people who have posted on popular biotech message boards on Stockhouse I'm sure they will jump at the chance to promote their picks here.

What I am looking for is the company name and symbol, number of shares currently outstanding as well as any warrants or options and their strike prices to assess their dilutive potential. Write a paragraph or two that will convince me and others that your pick has the possibility of being a huge mover in the near term and provide the latest financial information. I will go first to set an example for what I am looking for as well as to be the first one to pump my pick.

MKI - The Medipattern Corporation. 57.4M shares outstanding. About 3M in stock options outstanding with 2M of those being exercisable at less than 50 cents.

Financial situation - According to the latest financials ended Sept 30th, the company has $2.3M in cash, 400K of other short term assets, 300K in short term liabilities and $6.7M in convertible debt that leads to $4M in shareholder's equity deficiency. The burn rate averages about $500-$600K a quarter and revenue has not been significant.

Reasons to buy MKI - Last year the FDA approval of their product Visualize:Vascular™, 3D imaging software used to help physicians assess vascular disease sent the stock from 5.5 cents to as high as 84 cents in two days. It has since pulled back to around 20 cents. In the meantime the company has commercialised their product and has installed their equipment in 6 hospitals as of December. Revenues are expected to increase drastically, slowing the burn rate. I expect the $2M+ in working capital to be enough until they turn a profit. The company also has a working relationship with General Electric's Healthcare division, leaving the door open to the possibility of a buyout from that company to get a hold of their technology.

Near term potential movers - Quarterly financial updates are due at the end of the month. We might see revenue from those 6 hospitals although not much since they got running late in the quarter. An announcement of sales to more hospitals could be made. If GE Healthcare or another health care company like what they see from MKI's current 6 users, they could offer a takeover bid.

This is the level of analysis I am looking for. Thank you for adding your picks and good luck with them.

1 comment:

  1. Amorfix Life Sciences Ltd. (TSX:AMF
    Is a theranostics company developing therapeutic products and diagnostic devices targeting misfolded protein diseases including ALS, cancer, and Alzheimer's Disease.
    Propriotory Rights :
    - ProMIS™
    - Disease Specific Epitopes™ (DSE)
    -3 patents to key targets for misfolded SOD1 for treatment of amyotrophic lateral sclerosis (ALS) or Lou Gehrig's disease,
    Company Highlights:
    Alzheimers Disease
    - successfully detected the presence of the aggregated Beta-Amyloid (Abeta) peptide in the cerebral spinal fluid (CSF) from transgenic mice using the Amorfix A4 test.
    - developing a new diagnostic test(EP-AD CSF Diagnostic Test) that is able to measure clumped protein fragments, called aggregated beta amyloid, in human cerebral spinal fluid which may indicate the presence of Alzheimer’s disease
    - has achieved 85 percent specificity and sensitivity with its EP-AD CSF Diagnostic Test.
    - announced that it has signed a letter of intent with JSW-Lifesciences GmbH, a contract research organization specializing in Alzheimer’s and other CNS diseases, to license its pre-clinical Alzheimer’s disease diagnostic test, the Amorfix Aggregated Abeta Assay (the A4).
    - researcher Neil Cashman say they've made a surprise find about human cancer and brain-wasting diseases in animals that could pave the way for vaccines to halt all the diseases.
    - Amorfix Life Sciences and Epitomics, Inc./ Amorfix Life Sciences and Aragen Bioscience, Inc. / Amorfix Life Sciences and QED Bioscience announced that they have entered into an agreement to develop high-affinity monoclonal antibodies against a number of targets for cancer.
    - announced that together with its partner Epitomics, have produced high affinity antibodies to prion protein disease specific epitopes (DSEs),
    - update on its cancer therapeutic antibody programs. The Company is announcing that it has completed the initial characterization of its anti-PrP antibodies in cellular assay systems, which shows selective binding to certain tumor cells, but not to normal cells.
    - Company is collaborating with Helix BioPharma to develop novel therapeutics against cancers associated with misfolded prion protein.
    – Amorfix Life Sciences Ltd. and Pan-Provincial Vaccine Enterprise Inc. (PREVENT )today announced that the two groups have entered into a licensing agreement granting PREVENT exclusive worldwide rights to Amorfix’s lead amyotrophic lateral sclerosis (ALS) vaccines.
    - Amorfix Life Sciences Ltd.announced that it has entered into a licensing agreement granting Biogen Idec (NASDAQ: BIIB) exclusive worldwide rights to Amorfix’s lead amyotrophic lateral sclerosis (ALS) monoclonal antibodies
    - Amorfix Life Sciences Ltd., a product development company focused on diagnostics and therapeutics for misfolded protein diseases, announced today that three patents to key targets for misfolded SOD1 have now been approved by the United States Patent and Trademark Office
    – Amorfix Life Sciences, a product development company focused on diagnostics and therapeutics for misfolded protein diseases, today announced that the Company is developing a blood test to be used as a diagnostic tool for amyotrophic lateral sclerosis (ALS