A full buy recommendation report can be had for southern cross...

A full buy recommendation report can be had for southern cross equities vie Belldirect.com.au
Basically says this target 12 months 0.75c optimistic case $1.02
Nine reasons to own PRR
1. PRR?s CVac technology performed well in Phase IIa, with a number of responders to the product being registered in late-stage ovarian cancer
patients.
2. Ovarian cancer is a large market of unmet medical need. We estimate that the ovarian cancer market is worth US$2-3bn, with around 70,000
new diagnoses per year in the US, Europe and Japan but only a 20% five year survival rate using the existing standard of care, which is chemotherapy using the Bristol-Myers Squibb drug Taxol. We argue that
the clinical data for CVac to date gives the potential for the technology to eventually become the standard of care. CVac was granted Orphan Drug
designation for ovarian cancer in Europe and the US in 2010, providing certain market-related benefits.
3. CVac can be used for other cancer indications, with the technology having performed clinically against kidney cancer and also being theoretically useful against pancreatic, breast and lung cancer.
4. There is now a clear pathway to Phase III and regulatory approval.
CVAC?s Phase IIb trial commenced in mid-2010 and it is now merging into an 800-patient Phase III, to be conducted mainly in Europe from mid-
2011. Ordinarily a drug or medical device requires two Phase III trials
before it can apply for FDA approval. However PRR?s guidance from the FDA is that CVac IIb and III trials will be sufficient for this product. We
expect this Phase III to help put CVac on the market by 2014 or 2015.
5. The nearness of commercial revenues from CVac warrants a higher market cap for PRR. We think that the current market capitalisation of
Dendreon (Nasdaq, DNDN), US$5.6bn, is indicative of the potential of PRR. Dendreon gained FDA approval for Provenge, a cellular therapy
similar to CVac but for prostate cancer, in April 2010. The product gained CMS reimbursement in April 2011.
6. Dendreon has helped pioneer the regulatory pathway for CVac.
Dendreon has worked with the FDA to develop the protocols that would allow a cellular therapy such as CVac to be approved for clinical use.
7. PRR is a well-managed company. We have a high regard for PRR?s management led by CEO Martin Rogers. We like the commercial
approach that the company has taken towards realising value from the quality science behind CVac.
8. There is potential for PRR to realise value from non-core assets, namely the Oncomab cancer antibody technology, some early stage know-how related to an orally available HPV vaccine, and a 7% shareholding in Trillium Therapeutics, a privately held Canadian biotech
company which holds technology related to a PRR-developed rheumatoid arthritis drug target. We have allowed no value for these projects.
9. Our new target price is 75 cents per share. We now value PRR on the basis of bringing CVac to market by itself rather than via partnering. Our
new 75 cent target price for PRR (was 60 cents) is at the lowpoint of our base case $0.77 / optimistic case $1.02 per share probability-weighted DCF valuation range. It reflects the progress the company has made
towards Phase III for CVac. We expect a pivotal
trial for CVac to start in mid 2011 The success of ndreon, a US$5.6bn cap company, bodes well for PRR We value PRR at
$0.77 base case and $1.02 optimistic case