Hi Fred: I've just started eyeballing this one too. I came across an older article (July 1996) from the Financial Post that had twigged me to Micrologix:
University campus is home to a range of junior firms seeking treatments for AIDS, cancer and other ailments
There's no mining allowed in the expansive forests that surround
Vancouver's University of British Columbia, but there's plenty of academic digging going on nearby.
Several dozen high-tech companies call the university home, including six early-stage biotechs that may hold promise for investors. Commercial sales may be years away but market evaluations can grow rapidly when research shows the potential for profit.
The biotechs work closely with UBC's academic community and, in some
cases, have taken the school's science and brought it to the public market to fund further development.
Topping many analyst lists is Micrologix Biotech Inc. (MBI/TSE), found in the winding corridors of the B.C. Research Building south of the campus. The early-stage biotech is targeting the US$22-billion-a-year worldwide market in antibiotic drugs.
Micrologix technology breaks down the cell walls of bacteria, spilling out the cell's contents and killing the bacterium inside. The company is funding about $500,000 in research with the university.
The commercial potential has won the support of many industry watchers and helped raise more than $14 million in financing. But the market's recent downturn has taken the shine off the shares. In the spring, the stock climbed rapidly from the $3 level to a high of $5.15 on May 7 before receding to earlier levels. It closed yesterday at $3.45.
In a June 10 report, Deutsche Morgan Grenfell Canada Ltd. analyst Hari
Sambasivam notes the stock continues to trade at a discount to its peers. Sambasivam has a 12- to 18- month target of $6 on the shares. In addition, analysts at Yorkton Securities Inc. and Dlouhy Investments Inc. have issued "buy" ratings.
Micrologix "is the leader in Canada in antibiotics," says Dlouhy analyst Andre Uddine. "They're doing everything right in terms of research."
It's hard to know whether to jump on board while it is climbing or wait for a possible dip.
Dan |
