# GAA - Genepharm Australasia



## travcorp (25 May 2005)

Anyone have any thoughts on this share..?  Has a history of skyrocketing..

Here is a recent article on it from the Age..

Genepharm is on the verge of announcing the details of its much-anticipated retail pharmacy distribution plan and betting types are suggesting the generic drug maker will sign multiple deals with all three distributors - Sigma Company, Mayne Group and Australian Pharmaceutical Industries.

Speculation of an exclusive agreement with Sigma peppered the market over Christmas and sent Genepharm's share price above $1.50.

But the company has been taking its time talking to potential partners and is believed to have come up against some reluctance from all three to commit to an exclusive arrangement or an alliance that extends beyond an agreement merely to distribute Genepharm's products to chemists.

Behind the scenes, Genepharm's management is believed to be frustrated by a "lack of vision" among the distributors regarding their strategy for generic medicines, which is expected to double into a $2 billion market by 2008.

Chief executive Dennis Bastas said the company had assessed the merits of both exclusive and non-exclusive distribution deals and guidance would be provided to the market by the end of June.

"It's been in the works for a while and we have now come to a point where we're prepared to unveil what our strategy is and discuss why we've taken the path we've chosen," he said.

Bastas, a former Coles Myer and Village Roadshow executive, has recently travelled around the country briefing investors on his strategy, which could be one reason Genepharm shares have risen markedly over the past few days.

The stock has gained almost 15 per cent so far this month, closing at $1.21 yesterday.

ABN AMRO Morgans analyst Scott Power believes positive sentiment in the generic drug sector has helped - Arrow Pharmaceuticals is also trading strongly - as has the recent Federal Budget.

"I think the essence of the movement is the interest in generics, generally," Power said. "It's a very sexy sector."

Genepharm plans to register and market between 40 and 50 drugs by 2007, targeting blockbuster drugs as they come off patent.


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## travcorp (12 October 2005)

*GAA Genepharm Shares what do you think..*

I'm after any opinions about GAA Genepharm, there is an announcement imminent regarding the registration of generic pharmaceuticals.  Seems like the shares are gaining support  ....

What do you think?


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## Caliente (12 October 2005)

*Re: GAA Genepharm any suggestions?*

Hi, as a medical student one of my essays was regarding the Pharmaceutical Benefits Scheme. Here's an excerpt from my essay;

"This system has ensured that for all Australian residents the most that is required to be paid for a prescription PBS medicine is A$3.70 and A$23.10 respectively (Dept. of Health and Aging, 2004).  In recognition that some patients will be affected by the cumulative impact of co–payments, there is a capped system known as the “safety net threshold” designed to protect them. For pensioners this is set at fifty-two (52) prescriptions per calendar year or A$192.40 and for general beneficiaries, the family threshold is A$708.40. It is important to note however that if generic equivalents are available, then the PBS will only cover the least costly product and the patient must pay for the price differential between the brand name product and the cheapest alternative. This is not covered by safety net threshold."

This is good news for a generic company like GenePharm which according to their website is 

"committed to the development, marketing and distribution of a premium range of generic pharmaceuticals, including some of the newest and highest value Pharmaceutical Benefits Scheme (PBS) pharmaceuticals."

As a result, any generic products that are produced will have an even higher propensity to undercut branded pharmaceutical under the PBS, as they will be FREE and branded products will cost an excess which is likely to be unpalatable when the generic has been approved by the TGA to be as good as the original product.

I would like to know however; what products Genepharm are creating generics of.


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## Caliente (12 October 2005)

*Re: GAA Genepharm any suggestions?*

Hmm, I just read the Annual Report.

Simvastatin and Pravastatin (cholesterol modifying drugs) have come off patent. This is big news as the Statin market alone is worth billions of dollars every year.

Looks like a good prospect Travcorp, however, how many other significant players are there in the market? I would be personally inclined to invest in the one with the biggest established base (patients and GP's are loathe to switching drugs unless necessary) and best generic products profile.

Keep me up to date, 

Cheers
-Caliente


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## Duckman#72 (1 February 2006)

travcorp said:
			
		

> Anyone have any thoughts on this share..?  Has a history of skyrocketing..




Your not wrong - up 15% today alone.

Since early Jan 2006, GAA has risen from 92c to $1.27(currently)

Announcement today to ASX. GAA has approval for its brand of Simvastatin to be listed with Therapeutic Goods Association. Simvastatin is Australia's biggest selling cholesterol reducing drug with sales of over $400M for the year ended June 2005.


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## travcorp (30 March 2006)

Does anyone else think that it is a good time to enter this stock??  Drugs are suppose to go on sale next month with TGA having already approved Simvastin....


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## carmo (2 June 2006)

*GAA - Genepharm*

Does anyone know anything about the Genepharm suspension of trading?


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## travcorp (14 July 2006)

Now that Genepharm has taken over Douglas Pharmaceuticals with a $70 million acquisition, this share is a certainty going forward to crack a large chunk of the $1 billion and growing generic pharmaceuticals industry.

I am thinking about buying in, Intersuisse have a price target of $1.45 http://www.genepharm.com.au/GAA2/pdf/INTER_JUN06.pdf and Shaws Stockbroking at $1.35 http://www.genepharm.com.au/GAA2/pdf/SHAWS_20060607.pdf 

What do you guys think?


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## Duckman#72 (15 July 2006)

Hi Travcorp,

I've been watching to. With GAA back down to around $1 - on the back of the announcements last week, I think they are worth a spec buy. These shares have a history or rising fast when a play is made on them. 

Duckman


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## Duckman#72 (12 October 2006)

Finshed the day at $1.16. Up about 6% today. 

No announcement has been made in the last couple days. Seems a fair rise for a share that has just been kicking around $1.05 for the past couple of months. 

Duckman


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## LifeisShort (11 December 2006)

Is anyone still watching Genepharm? its back to the $1 level. Any toughts or graphs anyone care share? I've been watching this company and apart from the negative news on the new government policy on generic drugs its seems like its going places......


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## Duckman#72 (11 December 2006)

LifeisShort said:
			
		

> Is anyone still watching Genepharm? its back to the $1 level. Any toughts or graphs anyone care share? I've been watching this company and apart from the negative news on the new government policy on generic drugs its seems like its going places......




Yes I bought in at $1 about 6 months ago. Hmmmm...not sure what's happening. They had a positive write up in the papaer last week concerning postive cash flow for the first time and potential dividend thrown about for 2008. But all downhill for the share price ever since.

I thought they looked OK. I read in the AFR last week that they would be a good takeover target for Symbion.


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## LifeisShort (12 December 2006)

Looking at it neutrally, they are aggresively pursuing growth in a growing market. There are two bigger established players in Alphapharm and Sigma in the pharmaceutical business. They are diversified with cosmeticuels and vitamins etc. By taking over Douglas they are aiming for third biggest intheir market. How successful they'll be time will tell. I think the market sentiment might be a bit down due to the API debacle and the government policy.


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## badmarty (3 July 2007)

I just bought some for $0.53, with the forecast p/e growth of 161% I see it as a good buy. Also with th average intraday swing of around 5% it might be a good short term trading option.


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## badmarty (3 August 2007)

Thia stock has got me thinking, I mean can anyone show me another one under $0.5 with earnings, positive cash flow and a p/b of 1.06? I want to buy more at this price but I dont understand why its so cheap while the news is all good, anyone got any ideas?


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