Medgenics

Medgenics, researching a protein delivery technology, EPODURE, with the potential to combat diseases including anaemia and haemophilia, narrowed its losses from $4.85m to $4.41m (£2.92m) last year.

In a transformative 2009, the Israeli biotech minnow's anaemia clinical trials saw its EPODURE treatment working successfully on 4 of 6 patients used, while the company also struck a deal with a haemophilia treatment company for a feasibility study that will see some $4m come into the coffers in research funding.

Andrew Pearlman, chairman, argued last year’s results failed to reflect the research advances made by the group. ‘It has been a phenomenal year for Medgenics, despite the horrific economic climate and we have maintained the cash needed to survive’, he enthused.

Moreover, Pearlman believes President’s Obama’s proposed healthcare reforms will drive growth. ‘They aim to save money and our protein delivery method is substantially cheaper than any existing alternative. With anaemia treatments costing £20k pa and haemophilia treatments up to five times that amount, we believe we can substantially reduce costs for patients receiving those treatments’.

The ambitious Pearlman also points out that ‘the amount of money we have invested in research exceeds our market cap’ and argues that given the group’s proven technology and deals struck with big pharmaceutical companies, ‘we believe we are another GlaxoSmithKline in the making’.

Medgenics’ shares, floated on AIM at 10p in 2007 and now 6p, represent speculative, though potentially lucrative fare, though they are certainly not for widows and orphans.