Why it's hard to buy when a stock is on the riseJohn Beveridge...

Why it's hard to buy when a stock is on the rise

John Beveridge From: Herald Sun July 07, 2011

PHOSPHAGENICS is another biotechnology stock which is taking an interesting and profitable detour.

Its core science is around its TPM platform, which allows medications added to a patch to cross the skin barrier without causing irritation.

The big applications for this are to deliver the established pain medication oxycodone in a more gradual way and the real holy grail - applying insulin to treat diabetes without a needle.

To help pay the rent in the meantime, Phosphagenics has been using its research to produce its Elixia cosmetics range which differentiates itself from most other cosmetics by actually working.

By delivering a peptide through the skin that can shift fat deposits such as cellulite and other ingredients to reduce fine lines, the cosmetics range already has reached $1 million of sales in Australia.

Yesterday, it signed a distribution deal with Sungate Supplies to market the cosmetics, initially through the A.S. Watson and Company stores in Singapore.

Chief executive Dr Esra Ogru said the Asian region was the fastest-growing skincare market in the world, generating sales of $37.4 billion last year.

If Phosphagenics can now tap just a fraction of that growth with its range of cellulite shifting potions and fine wrinkle lotions, the funding of its more serious research tasks will be much easier.

Phosphagenics is upgraded to a speculative buy.

Link:http://www.heraldsun.com.au/business/in-the-black/why-its-hard-to-buy-when-a-stock-is-on-the-rise/story-e6frfinf-1226089232461