It says Phylogica could rally over the next few weeks, as it's set to sign another "pharmaceutical giant as a client".
It says buying interest could emerge as ChemGenex holders get their cheques from the takeover, and could deploy capital into PYC.
RBS analyst Scott Powersays a further deal (on top of those currently had with Roche, AstraZeneca and Pfizer) could be cemented in June, if not July.
Phylogica is Mr Power's key short-term pick in the biotech sector, and he recognises PYC's ability to do deals with big pharma, and it owns an "impressive library" of polymer peptides used in vaccines.
PYC is not as risky as many of its minnow biotech peers, bnecause PYC focusses on identifying potential drug prototypes, while its peers focus on drug development and discovery. PYC benefits from the above through milestone and royalty payments.
Mr Power believes PYC is positioning itself as an attractive takeover target.
RBS Morgans short-term price target is 8.5c. ______________________
Nothing like a snippet in the AFR to get things moving. Good luck, holders. :)
PYC Price at posting:
6.7¢ Sentiment: None Disclosure: Held
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