best news ever for giaconda --- off we go!

Todays announcement from Giacondas CEO Mr. Patrick McLean was the best news Giaconda has had for literally years. Being a shareholder of this tightly held Bio, this will be the start of bigger and better things to come.

The news is something that the Giaconda hasnt seen for years, CASH! $US500,000. This cash injection will help Giaconda develop the drug Ibaconda which is a more marketable drug than Myoconda. (Ibaconda - A combination therapy for Irritable Bowel Syndrome Constipation-predominant Irritable Bowel Syndrome)

I noticed that in last years Annual Report to shareholders on 23/10/2009 on page 8 that The Centre for Digestive Diseases will be Planning of the first Phase II clinical study on the use of Ibaconda for the treatment of constipation predominant irritable bowel syndrome.

From the Annual Giaconda Report

Ibaconda
Planning of the first Phase II clinical study on the
use of Ibaconda for the treatment of constipation
predominant irritable bowel syndrome (C-IBS)
continued during the period. This study is now
anticipated to begin in 2010 at The Centre for
Digestive Diseases subject to available funds. A
scientific poster on the combination was presented
at the Digestive Disease Week conference in June,
2009.


I believe that Giaconda has already started the first Phase II clinical study on Ibaconda. The reason is that in the last Disclosure Document - 4C for FY10 dated 2/08/10. I noticed that in the report the research and development was $36,000. While in the Appendix 4C - quarterly on 3/5/10 research and development was only $8,000. Im not saying that the money spent on research and development was spent on developing Ibaconda. But the question is what was the money spent on? I dont think the CEO would allow the money to be spent on other drugs when they were offloading them to Redhill. If this is the case expect an announcement on the advancement of Ibaconda soon.

According to the Annual Report to shareholders on 23/10/2009 on page 4 there are 466 million sufferers of Irritable Bowel Syndrome. The potential future sales for Ibaconda from a Power Point presentation is > 500 Million (from Thursday 27 November 2008 AGM Presentation). This would appear to be the CEOs center of attention for Giaconda.

Redhill Biopharma
I feel that Redhill will be pushing for an early as possible release for Myoconda. Why! The drug is at the last stage of development and Redhill a will be newly listed company on the Israel stock exchange so shareholders want some action on their expensive purchase. I hope Giaconda receives royalty payments soon.


Future Share Prices
The top 20 share holders which have 85.2% of the stock last year. This year it is 85.4% of the shares (one of the most tightly held shares in the ASX) it would not take much to see the share price move quickly with a good Ibaconda development announcement. Looking at the share price of just $00.05c and little share low liquidity it would not take much to see an increase in the share price. For example Giaconda gained 116.7% (+7c) to 13c over in a week, and while only 190,900 shares were traded in all In September 09.

Summing up
Just need to have some sort of timeline from Giaconda on Ibaconda and Redhill on Myaconda of drug developments.

When will they be going on the market?
Who will market the drug(s)?
Who will distribute the drug(s)?


I feel that the future of Giaconda is with Ibaconda with 1/2 a billion $US in potential sales. Considering Giaconda market value is now at 2.3 Million. With future sales this current share price of 3 cents will be a distant memory if/when approved.

If you think the share price is going to remain low think again as stated above, not many shares dont get traded in this stock a good announcement will send the share price in a rapid rise.

Wally

Yes, I own this stock (plenty)!