This is a section of a story by Martin Rogers appearing in yesterdays Australian. The article is saying that Bios' that have done the hard yards in the last decade( and have got it right of course ) investors will reap the rewards..My guess is only about 8-10 % ASX listed biotech stocks survive..The two mentioned in this in the paragraphs below fit into that percentage............................... In Australia, Acrux and Mesoblast are recent success stories from the biotech sector..Acrux has a licensing deal with US pharmaceutical major Eli Lilly for the global marketing of Acrux's Axiron testosterone treatment. The deal is worth more than $1bn (by combination of upfront and milestone payments plus royalties). Acrux paid its first dividend last year after product approval, of $100 million or 60c a share taxfree, and plans to do so again this year: a nice reward for truebelieving shareholders.
Mesoblast has a deal with American biopharmaceutical company Teva that gives Teva the rights to market Mesoblast's stem-cell therapies for heart and nervous system conditions. The deal was worth $US300m to Mesoblast in an upfront payment and may be worth as much as $US1.7bn in future milestone payments. These types of deals should make market watchers and investors think twice about dismissing the biotech sector and consigning it to the too-hardbasket...............Cheers Vin
ACR Price at posting:
$3.77 Sentiment: Buy Disclosure: Held
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