CMQ 0.00% 8.3¢ chemeq limited

chemeq builds for bright future

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    Chemeq builds for bright future

    By MATHEW CHARLES - Daily Telegraph
    29jul03

    CHEMEQ yesterday reported a bottom line loss of $7.2 million, largely as a result of costs associated with building a factory in Perth.

    But the animal health specialist's company secretary Andrew Dwyer said the loss was expected.

    "I think people would expect us to be doing quite a bit of work and that's reflected, I guess, in the size of the loss unfortunately," he said.

    Despite having no revenue streams – it got $544,000 in income generated from interest payments – Chemeq is a market darling.

    Its share price, which peaked at $8.46 a month ago, has made it one of the nation's 200 biggest companies by market value.

    Chemeq shares, up from $3.60 in May, yesterday fell 4c to $5.37.

    Chemeq plans to make a veterinary drug at its partly built Perth factory which will replace antibiotics in stock feed that artificially stimulate animal growth.

    World health authorities fear the antibiotics, also used to treat sick people, are instrumental in developing so-called super bugs in humans which are immune to antibiotics.

    Chemeq estimates the potential market for replacement antibiotics to be worth $9-10 billion.

    While the European Union plans to ban human antibiotics in stock feed by 2006 Chemeq's drug is yet to receive regulatory approval in many parts of the world.

    Nevertheless Mr Dwyer said management were busy signing potential buyers.

    Cheers,

    Fig Jam

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