bio technology 2007 the year ahead

Below is from Patersons Stockbroking report Technology 2007 The Year Ahead Pg 7

"With the re-tooling for manufacture of the paediatric asthma Funhaler spacer completed and the acquisition of Breath-A-Way in November, VSG is set togenerate good earnings in the next 12 months.

The new manufacturing of the Funhaler spacer has significantly reduced production costs and times and will enable the company to achieve gross margins of around 70%. The initial run of spacers sold rapidly and the company has distribution arrangements in place in Australia and access to the worldwide market through a licensing deal with Respironics.

Breath-A-Way is expected to contribute over $1.6m in revenue from sales and royalty payments in CY07. We anticipate that the company may report a profit in the next 12 months that would warrant a significant lift in valuation. (They already have see below from recent ASX Sales and Marketing Update)

"Dr William Dolphin, Visiomed CEO, said “We are very pleased to report that the company has achieved significant growth in revenues with strong sales in Australia and the added expansion into international markets. Domestic and early international sales in 2007 (calendar year) have exceeded $1.3 million and a maiden profit was recorded in the June quarter“.

They also picked IMI...click on the link to see the report.


http://www.starpharma.com/data/070123%20Patersons%20-%20Biotech%20Stock%20Picks.pdf

Cheers, PK