re: chemeq : successful production announced today Chemeq to...

re: chemeq : successful production announced today Chemeq to rain on its parade
By Geoff Elliott
02aug04

INVESTORS in Perth-based biotech firm Chemeq are bracing for more fallout today as it downgrades expectations on the immediate reach of its product.

Chemeq, which specialises in a patented growth product for the poultry and pig industry, has claimed the potential market for its products is $9 billion, but a company source said the claim was a "guesstimate".
Standing by the long-term outlook of a $9 billion market, a Chemeq spokesman at the weekend confirmed the more conservative outlook, saying the medium-term market was about $2.5 billion a year for the poultry sector, and $800 million a year for pigs.

Chemeq has been consistently questioned by analysts to prove its potential market claims amid concerns that the numbers were grossly exaggerated.

For instance, confidential independent analysis for a stockbroking firm, obtained by The Australian's Criterion column, indicated Chemeq had inflated the Australian market size for poultry by more than 80 per cent.









Chemeq's shares slumped 7 per cent on Friday as Criterion also questioned the status of the company's South African contract, prompting an announcement to the Australian Stock Exchange.

The stock closed down 15c on that day at $4.72.

Chemeq had earlier made no reference to a "sunset clause" on its South African contract, revealing on Friday it had lapsed on June 30.

The Criterion column on Friday referred to Chemeq's plant as having a capacity of 20 million tonnes a year.

This should have read 20tonnes with a possible upgrade to 200 tonnes a year.