Admedus
About the author:
- Author name:
- By Scott Power
- Job title:
- Senior Analyst
- Date posted:
- 12 June 2014, 9:00 AM
- Sectors Covered:
- Healthcare, Life Sciences
I have recently returned from the Asia BiotechInvest 2014 conference in Hong Kong, and one of the stand out presentations was Admedus (AHZ).
Key reasons to buy
- Well funded - recently completed placement and SPP expecting to have over $20m cash on balance sheet;
- Regenerative tissue division - led by CardioCel (approved in Europe and US) is gaining traction across key medical centres; and
- Vaccines division (leveraging off Prof Ian Frazer's work) is expecting to start Phase 2 trial in genital herpes before end of calendar year.
Strong newsflow to come
- CardioCel approval expected in various Asian countries and announcements in regard to additional centres;
- August report will show growing sales in medical products division; and
- Near-term news from Vaccines division - finalisation of Phase 1 Herpes results and details on start of Phase 2 trial.
The SPP stock started trading yesterday (11 June) so there could be some share price weakness over the next few days. I am a buyer.
We retain our Add recommendation and share price target of A$0.23.
More information
Morgans clients can access our detailed research on Admedus (AHZ). If you are interested in finding out more, please contact your nearest Morgans office.
Disclaimer(s): Morgans was Lead Manager to the SPP and Placement.
The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.
-
Print this page
-
Copy Link