SLT 0.00% 0.7¢ select exploration limited

slt-----am i missing something here???

  1. 5,609 Posts.
    • Select’s capitalisation is nominal at $4.9 million.
    • Valuations in the biotech sector in Australia exhibit a broad range, from around $10 million to several hundred million dollars.
    • The hepatitis A and E diagnostics will be seeking to achieve commercial deals in the next months.
    • The risk profile of biotech companies is by nature generally high, but declines as it moves closer to market.
    • The investor reward can be significant if technology milestones are achieved.
    This provides some frame of reference. Select’s ultimate valuation will depend on the success in commercialising its I.P. The risk profile is somewhat reduced by the near-term commercial prospects of the diagnostics.

    Cellestis is currently the closest comparable company to SLT with a current market cap. of approx $120 million and current sales of less than $1 million.


    • Select Vaccines ‘Select’ has been formed to commercialise technology from The Macfarlane Burnet Institute ‘Burnet Institute’, one of Australia’s leading infectious disease research centres.
    • Select is structured in two special purpose companies, which hold the rights to individual technology areas.
    • Select will initially hold 65% of each subsidiary company, with 35% to be held by the Burnet Institute.
    The companies and technology details are:
    1. Hepgenics Pty Ltd
    2. Picoral Pty Ltd
    Hepgenics Picoral Diagnostic Products Vaccine Products Therapeutic Products Hepatitis A
    Hepatitis E
    Hepatitis A Immunity Test
    Adhesive Peptides Virus-like particles (VLPs)
    Vaccines for Hepatitis A and E Anti-virals
    Screening Assay
    IP protection
    Patents have been granted or are pending for hepatitis E technology and other I.P. Patents have been applied for the VLP and antiviral technology. Select is also relying on trade secrets to protect its IP.
    Targets
    The immediate commercial target will be for hepatitis A and E. These tests have completed development and are ready to be launched on the market.
    Milestones for the first year:
    1. Finalisation of the appointment of a manufacturer / distributor or complete out-licence for the hepatitis A and E rapid tests.
    2. Development of an initial disease specific VLP within six months.
    3. Develop a second VLP within nine months.
    4. Prototyping and testing of the hepatitis C rapid test within 12 months.


    • The attention will be on Project 1. The development of the hepatitis E (HEV) and hepatitis A (HAV) diagnostic tests has been completed, and negotiations will commence with major companies, to take the products to market.
    • The advancement is that general medical staff will be able to perform the tests at ‘point of care’, with results available as the patient waits (around 2 minutes).
    • This compares to the current approach of sending a sample test to a pathology laboratory, resulting in a time delay (2 days), and greater cost.
    • This is relevant in developing countries with the greater occurrence of hepatitis, where cost and access are important factors.
    • The hepatitis tests are highly likely to increase disease detection, due to the greater accessibility for screening.
    • There is the prospect of developing a vaccine product for HAV and HEV (Project 4).


    Select’s research indicates that there are no current point-of-care diagnostic tests for HAV or HEV. Accordingly, competition will be against established procedures. The immediate objective for FY04 is to enter licensing agreements. This will involve negotiation with global health companies - with the appropriate distribution to target the relevant markets.


    * Hepgenics has estimated that it considers average sales of 2 - 4 million as being a realistic target.
    Hepatitis E (HEV): Present in large number in the Indian subcontinent and S. E. Asia.
    * Hepgenics has estimated that it considers average sales of 1 - 2 million as being realistic targets.
    While better sanitary and hygiene practices reduce the incidence of hepatitis in developed countries, travel and other factors result in a continued requirement for hepatitis testing and create a sizeable global market (estimated at US$400 million annually).


 
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