big volume, page-12

wilson $2.03 val'n Pharmaxis
A breath away from revenues

We maintain our BUY recommendation, and increase our valuation from
$1.94 to $2.03 as we become increasingly comfortable with the ability of
management to successfully market Aridol and Bronchitol. We expect
significant news flow over the next 4-8 weeks will re-rate the share price.
This news includes orphan drug status of Bronchitol for the treatment of
cystic fibrosis, positive results in the interim announcement of Phase II
clinical trials of Bronchitol for the treatment of cystic fibrosis, filing of a
marketing approval application with the European authorities for Aridol,
and possibly a distribution agreement with a European player for Aridol.

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analyst ses some P/E valuation cross-check analysis for F08 substantial earnings we are forecasting and the potential share price valuation of around $7.00 compares with a "perfect world" DCF of $6.00 assuming 100% probability of both products coming to market over the coming few years.