TD1 - TALI Digital

[Deadcat]

Re: AVX - Avexa Limited

Trading halt announced, results for phase II due on Monday 19th.

 

[Halba]

Re: AVX - Avexa Limited

Trials positive - in AFR. Any comments?

 

[Deadcat]

Re: AVX - Avexa Limited

Closed at 68c on Wednesday before trading halt. Market depth suggests offers now of over $1 for this stock. Will see how it goes after initial excitement.

 

[Halba]

Re: AVX - Avexa Limited

Not only is it positive but the trials have shown some very good results according to the AFR. This should be re rated to the $1 mark on monday based on these results. Those who panicked and sold will be regretting.

 

[Deadcat]

Re: AVX - Avexa Limited

Yes, I am going to hold for quite a while I think. Apparently nearly all drugs that make it through to Phase III hit the market. If they are raising capital to complete the Phase III trials then maybe takeover not on cards.

 

[Halba]

Re: AVX - Avexa Limited

Capital raising will be small $25m, which is only 25 million shares @ $1.

If its a Share purchase plan I will be participating. Not many chances to get into working drugs these days.

 

[noobs]

Re: AVX - Avexa Limited

A buy order sitting in the front of the queue for 209,500 units @ $1.15. That is big money even at current SP. Monday will be very interesting! I don't think it has anything to do with capital raising. Phase IIB results and I can't wait. Good Luck All

 

[Halba]

Re: AVX - Avexa Limited

Hi noobs and all

Phase 2b pretty much known.

Got this from another forum:

Australia could be on the verge of commercialising a multibillion-dollar HIV/AIDS drug after biotechnology company Avexa called a trading halt yesterday in preparation for the release of key trial results. Biotech analysts and industry insiders said Avexa's Phase IIb trial of its apricitabine (ATC) drug has produced a better than hoped for result, with ill patients showing a significant drop in their viral loads. To date, all HIV/AIDS drugs that passed Phase IIb have gone on to commercialisation. Avexa will also trigger a capital raising of about $25 million to help fund the next stage of ATC as it looks to forge a distribution and partnership deal with a major US pharmaceutical company. Avexa is expected to announce on Monday that the 50 patients enrolled in its drugs trial reported a 0.8 logarithmic decline in viral loads against a targeted 0.6 logarithmic improvement. It is particularly excited by the patient reaction because the powerful United States Food and Drug Administration (FDA) has set the benchmark at 0.5 logarithmic for a new HIV/AIDS drug to be approved. The drug also showed little toxicity, which is a major concern when doctors require stronger drugs to treat patients who have developed resistance to standard HIV/AIDS drugs. The FDA is the "gold standard" for new drugs and once accepted by that health department it is easy to gain access to other markets including Australia and Europe. The breakthrough is the success the Australian biotech industry has been waiting for after the failure of a number of high-profile and promising drug trials including Metabolic Pharmaceutical's obesity drug last month. Avexa, which is valued at $160 million, could be sitting on a pharmaceutical goldmine. In the US alone, HIV drugs sales hit $US5.6 billion in 2003 with Avexa's technology targeting the increasing number of people resistant to the first line of treatments. Shares in Avexa have rallied since December as early reports from the drug's trial were that patients were reacting well to ATC. The stock has risen by nearly 150 per cent since January and was at 68 ¢ before the trading halt was called yesterday. Avexa gained worldwide rights to ATC following a cash and equity deal with its partner Shire Pharmaceutical. Wilson HTM biotech analyst Graeme Wald said if the Phase IIb trials were successful it would significantly boost Avexa's value and could spark a bidding war by overseas pharmaceutical companies. "This would be quite an important addition to the choice of drugs for physicians treating HIV," Dr Wald said. He said Avexa's drug would be viewed as especially valuable because it was able to combat mutations in HIV/AIDS. Avexa was spun out of biotech company Amrad in 2004 and started life with a market cap of only $24 million. Its major shareholders include biotech investment and venture capital company Circadian Technologies, Mirrabooka Investments and the Liberman family's Jagen Pty Ltd fund.

 

[Halba]

Re: AVX - Avexa Limited

Yep results confirmed this morning. Not opening till wednesday due to capital raising.

Results were excellent and confirmed the article posted above.

 

[noobs]

Re: AVX - Avexa Limited

re: Capital raising - It would be great to see another SPP to current shareholders and not too institutional investors. The Phase 11B results are nothing short of amazing and I predict some massive interest in this one in the next month or so.

 

[Halba]

Re: AVX - Avexa Limited

Yes I wouldn't mind either way. Maybe a rights issue is the most equitable?

Usually avexa gives SPP, they did give one just a few months ago.

 

[Gurgler]

Re: AVX - Avexa Limited

What do you see as the likely outcome options of the capital raising?

Dilution is often perceived as a negative (in short term) - in terms of sp action. Is it canny of management to bundle these two ann's together to avoid a rise followed by a fall?
I ask in ignorance - a little new to this!

 

[noobs]

Re: AVX - Avexa Limited

Yeah agree with the rights issue being most equitable. I missed out on the last SPP by one settlement day

 

[Halba]

Re: AVX - Avexa Limited

gurgler re: dilution.

The equity raising is $25m dollars.

The market potential of the drug is stated to be very high >$1bn.

 

[noobs]

Re: AVX - Avexa Limited

The capital rasising ann according to the Herald:

WATCH what happens to the shares of biotechnology group Avexa when they start trading again today.
After a successful phase 2b trial of its AIDS drug ATC, the Richmond company had no problems landing a $15 million placement from US investors.

Locals will no doubt jump on the two-for-five rights issue at the same discounted price of 53c a share, helping to raise the $75 million needed to complete Phase 3 trials.

Normally a big capital raising would depress a share price that has already doubled in the last year.

But the trial results were so good and the AIDS market so large that Avexa shares could improve on their last trade of 68c.

 

[Gurgler]

Re: AVX - Avexa Limited

And this from The Age yesterday:

Avexa a possible takeover target with HIV drug success
Nabila Ahmed
March 20, 2007

MELBOURNE biotech Avexa could become a takeover target for multinational pharmaceuticals including GlaxoSmithKline, Merck and Gilead, analysts say, after the company unveiled successful clinical trial results for its HIV drug.

http://www.theage.com.au/news/busin...iv-drug-success/2007/03/19/1174152970108.html

 

[the barry]

Re: AVX - Avexa Limited

Im going to buy some of these as soon as they come on the market. If phase 3 trials prove to be succesful, you will be laughing all the way to the bank.

 

[Halba]

Re: AVX - Avexa Limited

Any idea whether this is coming on mkt today?

 

[Deadcat]

Re: AVX - Avexa Limited

Don't know if they will come on today. It seems to be building up some momentum through some great media coverage.

 

[Deadcat]

Re: AVX - Avexa Limited

The Barry, out of curiosity, if you are going to buy these shares as soon as it comes on the market, around what price are you going to put an offer in?