final trials could ease metabolics pain

FYI From Herald Sun 2/12/07 via Theraputics Daily:

SHARES

MELBOURNE-BASED biotech Metabolic Pharmaceuticals is developing drugs in the areas of obesity, neuropathic (nerve) pain, osteoporosis, type 2 diabetes together with a novel drug delivery technology.

These medical conditions have immense global significance with large associated markets.

The drug delivery technology has the potential for the efficient oral administration of a number of protein based pharmaceuticals.

The company is one of few maturing biotechs in Australia in late stage clinical validation of its principal product, an anti-obesity drug designated AOD9604.

Metabolic is now-awaiting results from the phase 2B trial which are anticipated to be reported in March. Should the results be positive the company anticipates a possible licensing deal with a global pharmaceutical company and a move to a larger phase three trial.

A pain drug, ACV-1 has recently commenced a phase 2A trial in patients with sciatic nerve pain and a phase 2 trial for the osteoporosis application of AOD9604 is anticipated to begin shortly with regulatory approval.

Recently (December 2006) the company raised $10.5 million through a share placement to existing shareholders which include Acorn Capital. Funds raised will be used to accelerate certain projects.

Currently Metabolic has in excess of $25 million in the bank.

From a technical perspective the Metabolic chart has given traders a roller coaster ride.

A gradual uptrend since listing at levels as low as 15 in 1998 saw the shares peak at $2.50 in December 2004.

It took less than a year for the subsequent decline to hit 40 in November 2005.

The recent rally to $1.15 has broken the downtrend. A base pattern has also formed with the potential to ultimately see the price back above the $2 level.

The current pullback is being driven by a small local top with a short term target of 75, however, strong support at 80 should limit the decline and provide an attractive entry point for those with a speculative bent.