I have recently taken a small position in AXCA for the following reasons and would
welcome a discussion on the merits of the company.
1) AXCA is a pharmaceutical company addressing the gastroenterology market. They are
the only Canadian pharmaceutical company with its own US sales and marketing
organization.
2) They recently had their shares listed on the NASDAQ and now have them listed there
and on the Toronto exchange.
3) Recently released 3rdQ results showed an increase of 214% in revenues and earnings of
$0.11 per share compared to $0.03 per share for the same period of 1999.(Please note that
this revenue increase was primarily due to an acquisition and the acquisition of the
remaining 50% interest that they didn’t already own in another company.) For the first
three Q’s, revenues totaled $63.5M and earnings of $0.18 per share. Respectively, this
indicates an increase of 320% and 900%. Their current cash and cash equivalents total
about $23M.
4)From a recently released report: (a)Gastroenterologist receive more than 26 million
visits from patients during the year ending March, 2000. This represents a 6% increase
from the prior year. (b)Esophageal disorders were the main reason for these visits.
(c)Gastroenterologist wrote prescriptions for $2.7Billion dollars during this period. (d)The
top five therapeutic drugs prescribed were for anti-ulcerants(25.9%),GI
anti-inflammatory(5.7%), GI stimulants(3.5%), pre-X-ray evacuants(3.4%) and
antispasmodic balldonna(2.7%).
5)In March (AXCA) released interim results on the Phase III clinical trails for
HELICIDE, a drug for the treatment of Helicobacter pylori(HP). HP is the cause of
gastric and duodenal ulcers, affecting at least 10% of the North America population at one
point in their lives. HP is found in 50% of the world population, including 25% of the
people in North America.
Results so far show that HELICIDE is at least as, if not, more effective than the current
most widely prescribed therapy for (HP). However, the advantage for HELCIDE is that it
overcomes an important compliance problem for patients having to take multiple drugs at
different times of the day. HELICIDE is a single dosage pill and is also more cost
effective than the current standard treatment.
The Phase III results should be released by year-end and if all goes well with the FDA, the
drug should be available in early 2002.
6) On August 7,2000, AXCA announced a deal with Diomed for 630 PDT diode lasers
and optical delivery fibers for use in photodynamic therapy(PDT). These lasers will be
used in conjunction with AXCA’s photosensitizing drug PHOTOFRIN. (PDT) is a
novel treatment for certain cancers in which PHOTOFRIN is injected into a patient
intravenously and then accumulates in tumor cells. Then after waiting three days, it is
activated by the laser light for up to 15 minutes at the tumor site by means of the optical
diffuser fiber used in conjunction with an endoscope. This procedures a toxic form of
oxygen that subsequently destroys the cancer cells.
Currently PHOTOFRIN is being marketed in France, Finland, Germany,
Portugal,Sweden,Ireland, Italy, the Netherlands, and the United Kingdom. The treatment
is available for esophageal and non-small lung cancers.
AXCA recently completed the enrollment of patients for the Phase III trials for the use of
PHOTOFRIN in the treatment of dysplasia and metaphasia associated with Barrett’s
esophagus, a condition that results from prolonged heartburn and is often a precursor of
cancer.
Recently Chase/H&Q issued a BUY on the stock. It should be noted that they were
involved in the recent $40.1 million public offering here in the U.S. IMO, the current share
price being just under $9.00 is a bargain...if all goes well with the potential new drugs and
PHOTOFRIN for the treatment of certain cancers |
