crystal ball reading accurate

It is interesting how this article from share cafe in august 2005 is accurately unfolding.
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So how will Imugene get the product to the 40 billion chickens? Imugene are smart enough to realise that they shouldn‘t be using shareholders funds opening offices, hiring sales forces and running expensive marketing campaigns around the world. Selling veterinary products is a specialised industry and it would entail a very high cost before there was any return for shareholders. As such they are in active discussion with Merial.

Merial is the world‘s second largest manufacturer and distributor of veterinary products and would be a superb partner. They have signed a first stage agreement and now there are only relatively minor details to be completed. Why would Merial want to take on the Imugene product?

Well a little known fact is that less than 1% of veterinary products gross over $1 million a year in sales. Imugene‘s chook booster has tremendous potential. Estimates of world wide potential sales vary from US $200 million to US $600 million, quiet simply it would be a blockbuster drug for Merial. Merial also see that this is a product in the last 25m of a 400 metre race.

Global Pig & Poultry Markets - (Source - http://www.imugene.com )

Imugene is definitely not a one product company. Imugene have a bird flu immunisation product. You will be aware that Vietnam has started to immunize all their birds. The World Health Organisation believes that the potential for terrorism via transporting bird flu to the world‘s poultry is a first rank terrorist threat. Enough bird flu agent could be carried into the US on top of a pin head to cause a major epidemic.

Imugene have done extensive work on their bird flu product and are now ready to go into trials. This will take some time. However the speed to the market may change rapidly if there is a sudden major bird flu scare. One of the products potential benefits is that birds coming across borders can be easily checked as to whether they have been immunised or not. Other products can not be detected vis-à-vis whether the bird has or has not had bird flu.

Finally, Imugene has advanced development of a number of products to reduce several problems in pigs. Not only are there 40 billion chickens a year but there are billions of pigs as well! One of the problems which has been very difficult for pig producers to solve is the prevalence of gastro diseases. The Imugene product reduces the spread of this and will have major benefits to this world wide industry.

Imugene is capped at under $30 million and has been extremely careful with its cash. There is enough cash to continue for 2 years. If regulators behave reasonably this will mean they would be in world wide production/sales of their chook booster and well advanced on other products.

Hudson Securities in a recent report said that they believed that Imugene could realistically look forward to making $48 million a year by the year 2008. Owning stock in Imugene might be an acquired taste. However should they peck out Hudson ‘s proposed figures, it‘s a taste you might get used to.