Biotechs chalk up a healthy charge Probiomics (PCC) 22.5c
AFTER a lean quarter for biotech capital raisings, global investor interest has surged and we can expect those with a half-decent yarn to replenish the well. According to newsletter Bioshares, biotechs raised $12.6 million in the March quarter, compared with $232m in the December quarter. As our Roman envoy would say, that's about enough for a sandwich and a milkshake. Paradoxically, biotechs' shares outperformed the broader market in the March quarter. Bioshares estimates a 9 per cent gain while rival Biotech Daily's basket of 40 biotechs surged 16 per cent. Having backdoor listed through Probiomics, Hunter Immunology yesterday relisted at a similar level to the $2.2m raised via the restructure. We'll call that a seal of approval for the new entity's quest to commercialise its proposed drug to prevent infections related to chronic obstructive pulmonary disease. A phase 2A trial of 38 patients showed that Hunter's lead compound, HI-1640V, reduced hospitalisation by 80 per cent. A phase 2B trial hopes to replicate this with a pool of 320 patients. While drug developers tend to promise the world and then deliver the equivalent of Burundi, there's a make-or-break aspect to this one. Chief David Radford says a big pharma is expected after the trial results are released before June 30. So those who invested -- including former Colonial First State chief Chris Cuffe and Maple Abbott Brown's Chris Abbott -- will soon know whether this one's a multi-bagger or a tax deduction. Probiomic's focus is redolent of that of COPD specialist Pharmaxis (PXS, $1.35), which has cracked the European market for its cystic-fibrosis treatment Bronchitol. It is pitched at improving lung function. We'll call Probiomics a spec buy and also stick with Pharmaxis.
