brokers upgrades

Bell potter upgrade valuation to $16.31 and eG Capital upgrade to $20.15


BUSINESS
Biotech takes a breather
JOHN BEVERIDGE
207 words
17 April 2007
Herald-Sun

VOLATILITY and biotechnology stocks always seem to go hand in hand.

And the trip is always more exciting than arriving at the destination.

All of which explains why Progen Pharmaceuticals shares took a breather with a 3 per cent fall to $8.83 yesterday.

As had been widely anticipated in the market, Progen's phase 2b trials on its novel liver cancer treatment were very promising, reducing the relapse rate of the disease by around 25 per cent.

The results greatly increase the chances of Progen's drug PI-88 becoming a registered treatment for liver cancer.

Progen is now expected to raise some cash over the next few months to fund the phase 3 trials -- most likely through a placement and rights issue.

Anticipation of the good results has seen Progen shares soar from a year low of just $2.48 to last month's high of $9.56.

A couple of brokers suggest there could be more upside to come with Bell Potter slapping a $16.31 valuation on the stock.

Emerging Growth Capital were even more bullish, calling Progen a "strong speculative buy" with a valuation of $20.15 a share.