Avoid this digital TV software stock until we see some more contract wins
Hiding its light under a bushel since its 2006 AIM float, biopharmaceuticals smallcap Lipoxen is very nearly singing from the City rooftops about its deals with a raft of the industry’s biggest players.
Lipoxen’s two platform technologies, which deliver proteins and vaccines into the body, both have products in Phase I clinical trials. Both platforms work to make treatments more effective by enabling them to be circulated in the body for longer.
The protein platform’s diabetes product, called SuliXen, emerged successfully in April from Phase I trials and an anaemia product, ErepoXen, completing its own Phase I in late May. However, for such a small company developing its wares is too costly and so chief executive Scott Maguire, whose investment banking past has given him a long list of contacts at US of pharma companies, is signing deals with large partners.
So far, three significant licence deals have been made: ErepoXen is being developed in partnership with world-leading vaccine producer, the Serum Institute of India; a veterinary version of SuliXen is under agreement with pharmaceutical colossus Schering-Plough; and healthcare giant Baxter has an agreement over a potential treatment for haemophilia.
‘We’re looking to increase visibility now,’ states Maguire, who assures that the company is set to generate a bubbling brook of news this year. Broker coverage will help too, and Landsbanki has initiated its coverage with forecasts of breakeven in two years.
Receiving a number of ‘milestone payments’ from its partners for reaching particular levels of development has so far helped cash levels to £1.8 million by March. Maguire says a cash burn rate of £100,000 a month means it has sufficient for now and he is ‘expecting a couple’ of milestone payments this year and ‘at least’ one more license deal. Speculative buy.
Market cap: £30.5m
PE Forecast: n/a
Share price: 25.5p
Published in September 2015 this annual research report provides a comprehensive overview of cash shells on the Main Market, AIM and PLUS landscape. Order your copy today.
SharePad is the new web-based service from ShareScope. Easier to use and more powerful. Perfect for tablets, Macs and Windows PC. Covers ALL your investment requirements.
Since 2008, our share tips outperformed the benchmark by 281%. Take a free trial and get access to our recommendations today. Start free trial now.
Small-cap and growth company share recommendations on AIM- and PLUS-listed companies. Latest analysts' stock tips and advice on which are the best shares to buy on London's junior stock markets.
Be the first to receive our independent analysis and research, designed to help you generate more wealth for you and your family over the long term. Subscribe and save.