Narhex Life Sciences - Float

[dus]

Anyone heard of them?

They have developed a product specialising in the HIV/AIDS field. The product has a patent in China, US, EU, Aust., amongst most countries.

Claim to reduce or slow the HIV viris, and have made promising results. Need to float to raise the extra funds for reseach and development, and to bring their product to commercialisation. Their primary target market is China initially, and they are in discussion for licences to sell the drug.

I have been reading the prospectus and will probably few a couple of grand in myself, just wondering if anyone else has heard of them. They float on the 30th November i think.

 

[dus]

Also for those who care, they are issuing stock @ 20c to raise $8mill and will take oversubscriptions up to $12m.

They are not claiming this as a cure, moreso an inhibitor.

Very speccy, and will probably be all or nothing. Much depends if they can bring thier product to commercialisation, and make revenue/profit.

 

[Dr Who]

There are a number of companies well advanced with similar targets on the ASX alone. Not that this means their drugs will be better however. Biotechs in the US are massive and pay mega bucks to unlock the answers that will bring blockbuster drugs to market. This is one very tough game, most will fail. However, should they make it, the rewards are certainly massive.

I would also worry about targeting China even with patents. These guys aren’t widely known for their respect of intellectual property and are a very tough market to break into with anything.

If the market likes these companies when they list you could double your money on listing, or half it if they don’t, as you are clearly aware of. Bio’s aren’t the most loved stocks on the ASX atm, so that maybe worth considering. There seems more focus on larger caps and mining stocks (gold/nickel/oil) just at the minute also.

Im not trying to put them down, as I haven’t looked at them. Good luck with what ever you decide.

 

[dus]

There are a number of companies well advanced with similar targets on the ASX alone. Not that this means their drugs will be better however. Biotechs in the US are massive and pay mega bucks to unlock the answers that will bring blockbuster drugs to market. This is one very tough game, most will fail. However, should they make it, the rewards are certainly massive.

Very true. Narhex's product or a similar product isnt available in China, but there are similar products in the saturated US market.

I would also worry about targeting China even with patents. These guys aren’t widely known for their respect of intellectual property and are a very tough market to break into with anything.

Again, very true and a definate concern. Narhex plans to develop and produce the compound in the drug (the thing which is patented) offshore so that it cant be copied. The also claim the product cant be reverse manufactured, so once on the market, in theory cant be copied.

If the market likes these companies when they list you could double your money on listing, or half it if they don’t, as you are clearly aware of. Bio’s aren’t the most loved stocks on the ASX atm, so that maybe worth considering. There seems more focus on larger caps and mining stocks (gold/nickel/oil) just at the minute also.

Most small cap mining stocks have had their run. Bio;s arent favoured, but im hoping a change isnt far away. If they can raise the full amount they are going for, then they wont have to raise (in theory) any more funds until their product is commercialised/earning revenue.

Im not trying to put them down, as I haven’t looked at them. Good luck with what ever you decide.

No worries champ, cheers for the reply.

Look into them and tell me what you reckon.

 

[Dr Who]

Most small cap mining stocks have had their run. Bio;s arent favoured, but im hoping a change isnt far away. If they can raise the full amount they are going for, then they wont have to raise (in theory) any more funds until their product is commercialised/earning revenue.

Mate, id double check that one. Taking a drug to market is super expensive. Most countries will drag the ball and chain until the FDA (America) approve it. Bottom line here is the most recognized drug approver in the world is the FDA, and getting past phase 1, 2 and particularly phase 3 is very expensive.

To give you an idea a company I like Novogen (NRT) are in phase 2 and have 50m in the bank. They will most likely (95% sure) strike a deal with a big US pharma to get to market. Phase 3 is just so expensive, its mind boggling.

The number of drugs that fall at the last hurdle is also mind boggling.

If you want a punt, id seriously look at CCE, CST, EPT, PXS, PGL, or NRT in the bios. Also TZL and ICS could provide massive gains if all goes well.