Our stock pick of the week is Biota Holdings Limited (BTA)
Biota had a rally based on the sales of Relenza for the H1N1 flu pandemic but has now retraced to a more realistic price level.
This stock ticks a few boxes for us: There has been recent buying by a director ($175K worth) Broker recommendations have increased Smart money is evident. The Nielsen Supply Demand Indicator has been increasing and there is divergence between price and this indicator. This means that as the price has been falling over the past month or so, demand has been increasing.
more details below....
Stock Pick of the Week: Biota Holdings Limited (BTA)
Biota Holdings Limited is concerned with anti-infective drug discovery and development, and its commercialisation, with key capabilities in respiratory diseases, particularly influenza. It is based in Melbourne, Australia and Oxford, UK. Biota has developed the in-class neuraminidase inhibitor, zanamivir, subsequently marketed by GlaxoSmithKline as Relenza. Relenza is used to treat seasonal influenza. Biotas research outcomes have included nucleoside analogues designed to treat hepatitis C virus (HCV) infections, licensed to Boehringer Ingelheim, and a series of candidate drugs aimed at treatment of respiratory syncytial virus (RSV) disease. Biota has clinical trials underway with its lead compound for human rhinovirus (HRV) infection in patients with compromised respiration or immune systems. In addition, the Company has a partnership with Daiichi Sankyo for the development of second-generation influenza anti-virals.
From their website: In 2009:
*Phas e IIa clinical trials of its lead human rhinovirus (HRV) drug achieved clinical proof-of-concept. The drug is aimed at prevention and treatment of one of the major causes of the common cold which is also thought to be a major cause of exacerbations in patients with chronic obstructive pulmonary disease and asthma.
*Phase III trials for laninamivir in Asia were shown to be effective. Daiichi Sankyo, who co-own the LANI program have elected to market the drug in Japan.
*Biota expanded its antibacterial interests following the asset acquisition of Prolysis Limited and MaxThera Inc.
The Company's research pipeline also extends beyond respiratory diseases, including early stage research targeting the hepatitis C virus (HCV) and respiratory synctial virus (RSV).
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http://www.theinsidetrader.com.au/
BTA Price at posting:
$2.07 Sentiment: Buy Disclosure: Held
