just relased bioshares report

Alchemia – Arixtra Sales Accelerate
Alchemia's (ACL: $1.105) is developing a
generic version of GlaxoSmithKline’s anticoagulant
drug Arixtra (fondaparinux).
GlaxoSmithKline reported its full year results
for 2006 overnight. Finally there are
signs emerging that Arixtra sales are beginning
to accelerate. For the three months
ended 31 December 2006, Arixtra generated
global sales of US$40 million, a 67%
increase over the 2006 September quarter.
Annualised sales are now tracking at
$US160 million a year, or $88 million in
the US. Over the 12 months, Arixtra sales
increased by 143% in 2006 over 2005 to
US$107 million worldwide.
The implications are that there is substantial
more growth in this product. Arixtra is
competing against Lovenox, which generated
sales of US$3.7 billion. Alchemia is
developing the only generic (at this stage)
version of Arixtra, which is due to be filed
for registration at the end of 2007. Under
new FDA guidelines released by the FDA,
first to file generics in the US can expect
drug marketing applications to be assessed
in six months, which may see Alchemia's
drug on the market in the US as early as
mid 2008.
Express Edition
Another implication of this changed market
condition is that the ability for Alchemia
to find a marketing partner in the US is
substantially improved, as should the terms
upon which such a contract may be negotiated,
in favour of Alchemia.
Alchemia is capitalised at $155 million and
held cash of $16.5 million as of December
31, 2006.
Bioshares recommendation:
Speculative Buy Class A