interesting comments...STI - Stirling Products Ltd.Relisting of...

interesting comments...

STI - Stirling Products Ltd.
Relisting of a former oil company to commercialise feed enhancers for livestock industry and products for companion animals. The company listed a little too early in its development cycle as trials had barely started so short term downwards pressure on prices were expected. However, prices doubled in three months to a peak of 60? in January 2005 due to heightened expectations for the results of field trials, particularly on pigs in the US. Prices fell 58% in 2005 with some recovery due to good results from US pig trials and chicken trials and an agreement with a South African company to fund trials. Prices declined by 53% in 2006 due to lack of trial progress with some recovery at the end of the year due to new trial expectations, a new agreement with Merial and a new manufacturing arrangement. There was a temporary 16% increase in early 2007 associated with positive trial results in beef cattle and horses and potential for application of its feed enhancer to aquaculture as well as new arrangements in North America culminating in the acquisition of Progressive Bioactives Inc. However by year end prices had fallen 45%. In early 2008, there was some price oscillation associated with fund raising and proposals for trials in Chile. There was also some positioning in niche markets through feed additive and diagnostic arrangements. Prices fell 92% in 2008 following announcement of distribution and manufacturing arrangements, a milestone payment and a move into thecompanion animal sector. However, commercially significant levels of revenue were only just starting to appear and company continued to languish with market cap less than $1 million with limited funds. Company positioned itself for future growth which would depend on effective implementation of commercial strategies and access to funds to support growth. This eventually led to a recapitalisation of the company, turn over of board and management, refocussing on Salbutamol product, shifting of company to the other side of Australia, a move into phytopharmaceuticals with positive, aggressive promotion and licensing of an aerosol drug delivery platform. This was accompanied by a 250% recovery in prices in 2009 and market cap at $15 million with expectation of selling a pharmacy line in 2010. Despite this, the company is continuing to look vulnerable: down 43% in 2010 to $11 million with little signs of substantial commercialisation and indications shareholders are losing confidence in company. Stirling has also acquired a 65% controlling interest in TeleMedCare Holdings with much associated activity and 80% in pathology company Halcion but little increase in share price. (30/10/10)

http://www.valutech.com.au/pages/Biotech2010QZ.html