TMC.V price target:
(PHPI)
TM BIOSCIENCE CORPORATION (TMC $0.81, CDNX)
Recommendation: SPECULATIVE BUY
12 to 18-Month Target: $3.75
Ezra Lwowski (416) 864-3583; elwowski@yorkton.com
Annual General Meeting Highlights Progress and Prospects
EVENT: The recently held AGM of Tm Bioscience Corporation highlighted the progress the company has made in its drive
to commercialize its genomics products. Greg Hines, Tm's new CEO, reviewed Tm's proprietary technology platforms, and
gave his insight into Tm's two-pronged approach to reaching market with these platforms.
COMMENT: In line with the first strategy of outlicensing its technology, Tm has three collaborations ongoing, one with PE
Biosystems, the sister company of Celera Genomics that recently announced the draft sequencing of the human genome. In
these collaborations, the company's HybAssist technology is being evaluated for use in novel biochips, and in the development
of novel diagnostic assays. The components of HybAssist being evaluated range from ligand controlled hybridization (the
control of DNA binding on biochips) to Tm's exclusive and patented hairpin capture probes (for increasing binding efficiency
of any DNA reaction in any format). Recently issued U.S. patents for these technologies considerably strengthen Tm's
position. Three new collaborations are about to begin with some of the world's leading genomics companies. We expect more
announcements about these collaborations in the next few months.
At the same time, Tm is pursuing the other aspect of its drive to commercialization, which is its internal development program of
its own superior biochips combining Tm's own technologies with the services of the Microarray Facility of the Ontario Cancer
Institute. We believe that as a genomics tools company, Tm is very well placed to take advantage of the enormous development
effort that is going to arise from the recent sequencing of the human genome. The experience of similar U.S. companies suggests
that the pursuit of Tm's own internal product development will lead to a greatly enhanced market valuation.
CONCLUSION: As one of Canada's few genomics companies, we expect Tm’s share price will increase as it is able to
demonstrate progress in its outlicensing program and in its internal biochip development program. However, until the
company completes some of its collaboration agreements, we will continue to rate the shares as a Speculative Buy. Our target
price of $3.75 is based on the average of comparable publicly traded genomics tools companies.
Tm Bioscience is a genomics company which designs and develops enabling technologies for DNA microarray and other DNA-based
assays used in
drug discovery and patient diagnosis
Yorkton Securities has acted as agent for financing of or financial advisor to Tm Bioscience within the past three years.
Yorkton.com – delivering Yorkton's proprietary research to your desktop. Available at www.yorkton.com.
Previous Day’s Volume 126,000
12-Month High-Low $4.50- $0.11
Shares Outstanding 116 million
Market Capitalization $74.8 million
Float 37.3 million
Float Value $30.2 million
Index Member N/A |
