age today

News keeps on coming (front page of business section)

VICTORIAN companies valued between $50 million and $300 million are outperforming their bigger counterparts.

According to the Deloitte Victorian Index quarterly report, the 87 micro-capitalisation companies included in the index grew by 5.3 per cent in the quarter to March 31.

Small capitalisation companies, with a value between $300 million and $2 billion, grew just 2.9 per cent, and mid-capitalisation companies valued at up to $10 billion improved their value by 2.8 per cent.

The report found five micro-capitalisation companies — Avexa, Oncard, Solagran, Molopo and Celtex — increased their value by between 180 and 364 per cent.

Avexa chief scientific officer Jonathan Coates said the HIV-focused biotechnology company had received good results from a phase 2 trial of the compound apricitabine. Avexa hopes to begin further trials before the end of the year.

Oncard chief executive Peter Abotomey said the software and services company, which produces loyalty cards, had expanded into 32 Chinese cities.

Solagran company secretary Peter Stedwell said positive Australian trials of the drug Ropren had prompted share price appreciation in February.

"Swinburne University trials on Ropren confirmed a lot of the results that had been obtained in Russia," he said.

Mr Stedwell said several more announcements had been made to the market since then, which indicated the drug was about to be approved in Russia and confirmed a production facility had been bought there.

Molopo managing director Stephen Mitchell said the energy company was expanding, and had hired BHP Billiton's coal bed methane to help it further develop its assets.

He pointed to a better understanding of the importance of different energy sources as a catalyst for the share price appreciation.

Deloitte partner Grant Hyde said it was encouraging to see research and development companies among the top five micro-capitalisation companies for the quarter. "Some of their activities are being recognised in the market and being monetised," he said.