this is an old recommendation, june last year. results should be soon. any comment?
Avantogen Limited (ACU) Immunotherapy and cancer treatment Recommendation: Speculative Buy ?? Outstanding results for Avantogen’s RP101 anti-cancer therapy in clinical trial: survival time for pancreatic cancer patients doubled. These excellent results boost confidence that RP101 will become a successful cancer treatment. Expected cash flow from pancreatic cancer treatment is worth 26 cents/share ?? GPI-0100 adjuvant promises to deliver a steady and growing royalty stream, with first royalty payments from Pfizer expected this year ??" Phase IIb clinical trial results for Pentrys cancer vaccine due early 2006"
ACU has recently received its first revenue from its GPI-0100 adjuvant. This is the first of what is expected to be a growing stream of royalties and milestone payments for this product. The value placed by Big Pharma on the benefit of improved adjuvants to boost their cancer and infectious disease vaccines is emphasised by the recent US$300 million purchase of adjuvant company Corixa by GlaxoSmithKline. 3. Pentrys™ p53 Cancer vaccine is in Phase IIb clinical trials in prostate cancer patients and preliminary results are due in first quarter 2006. 4. BBY estimates that if RP101 was successfully launched as a pancreatic cancer treatment in 2009 then the present value of the likely after-tax cash flows would be AUD $0.26 per share, underpinning our buy recommendation. 5. Management has indicated they believe that they will be able to launch RP101 into the US market in 2007. An early launch would boost the value of RP101 cash flows to AUD $0.45/share. 6. Initial indications are that RP101 will also be effective against a wide range of cancers, including ovarian, breast and liver cancers. Additional cancer types could be treated offlicence, or RP101 may be registered to treat other
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