|
|
|
|
|
LOS ANGELES, CA, July 27, 2012 - (ACN Newswire) - In a flash note to clients on Friday, Roth Capital Partners' analyst Joseph Pantginis, Ph.D.,says that Thursday's FDA approval for Amarin Corporation's (NASDAQ:AMRN) Vascepa bodes well for Neptune Technologies & Bioressources' (Nasdaq:NEPT) (TSX:NTB) underlying and growing core NKO business as well as the pharmaceutical opportunity with Acasti's CaPre.
"We believe this is an important win for the Omega-3 space and also bodes well for Neptune which has a potentially differentiated product," wrote Pantginis.
"We believe that all the pieces are starting to come together in a significant way. Bolstered by the recent strong QoQ growth for the core NKO business and our expectation for continued growth, we believe that Amarin's approval for Vascepa is an important win for the Omega-3 space. The visibility on what transpires with Amarin should positively affect Neptune, in our belief, based on our continuing thesis that NKO(R) (Neptune Krill Oil) and CaPre(R) (pharmaceutical grade) > Vascepa > Lovaza with regard to potential clinical benefit.
"This differentiation is based on an anticipated "trifecta" of clinical benefit: 1) significant lowering of triglycerides, 2) lowering of LDL cholesterol and 3) raising of HDL cholesterol. We anticipate that CaPre is poised for a solid entrance into the pharmaceutical Omega-3 space. Results of an open label study of CaPre are anticipated by year end 2012, while a randomized Canadian Phase II study of CaPre could read out in 1H13."
As reported previously, Neptune has filed the regulatory paperwork for a spin-out of its second major subsidiary, NeuroBioPharm. NEPT investors continue to anticipate an announcement about a proposed stock and warrant dividend for their 99% owned subsidiary NeuroBioPharm Inc which should be announced any day. ("NeuroBioPharm"), which is developing krill oil formulations for neurological disorders.
Pantginis believes Neptune warrants a higher valuation. Roth Capital reiterates their Buy rating and $10.30 price target.
Neptune has been showing continuous growth and strong results for its core business and recently confirmed firm orders from Asia amounting to US$25M for calendar year 2013. Krill oil awareness in Asia, being greatly associated to Neptune's NKO(R) as a premium reference of Omega 3, clearly confirms Neptune's brand's initial recognition in the Asian nutraceutical market. They have reinforced patent positioning and are also expecting to initiate and earlier than planned third phase of its Sherbrooke plant expansion (which was originally scheduled for 2014). The goal here is to take the current capacityof 130,000 kg per year to >400,000 kg per year in 2014. Important executive and management changes have been made in anticipation of this significant growth which also sets expectations for increased revenue growth.
Disclosure: Author is Long NEPT
The full report on NEPT is available at: http://www.biomedreports.com/
Healthcare investors and Biotech traders interested in accessing BioMedReports' new complete database of clinical trials and upcoming FDA and world-wide regulatory decisions which can be used to make more profitable trades and see upcoming catalysts can go to: http://biomedreports.com/fdacal.html
Follow Us
News developments and live healthcare sector updates are available constantly via twitter at: http://twitter.com/BioMedReports
About BioMedReports.Com
BioMedReports is a news and research portal covering financial biomedical news and the entire Healthcare Sector of the market. BioMedReports is not paid or compensated to report the news and developments of publicly traded companies. BioMedReports sells a premium product for subscribers and full disclosures and information about the stocks and news mentioned in this news release is available at BioMedReports.Com
This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: BioMedReports via Thomson Reuters ONE
Topic: Press release summary
Source: BioMed Reports
https://www.acnnewswire.com
From the Asia Corporate News Network
Copyright © 2024 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.
|
|
|
