Wednesday, 29 September 2010

Health Canada Thumbs Up To Neptune's Krill Oil

Neptune Technologies & Bioresources
(NTB - TSX V) (NEPT - NASDAQ)
Basic Shares: 40.2 million
Fully diluted: 43.1 million


*********************************

In a young company's life there are key accomplishments around which all future success turns.
Neptune arguably hit that with its Sept. 29th announcement that Health Canada had approved Neptune's Krill Oil health claims.

Health Canada is one very tough nut to crack; it took two years of rigorous examination before the endorsement came.

And it's an endorsement that can literally be heard around the world because of the high level of respect Health Canada's pronouncements command.

Given that Neptune is working closely with Nestle, Yoplait and Bayer, it couldn't come at a better time.

It's also very timely given another recent news release announcing that Neptune subsidiary, Acasti Pharma Inc, and its product CaPre™ significantly outscored the market darling Lovaza(R), a fish-oil based product, in health benefits.

Lovaza sells well over $800 million in the U.S. alone and those rights were sold for nearly $2 billion.

So the question is, what is Neptune worth?
Catalyst Equity Research Analyst Robin Cornwell weighed in on that issue right after Health Canada's endorsement was announced.

"In our opinion Neptune shares are currently undervalued by at least $3 dollars to $5 dollars per share."

Mr. Cornwell also said the Health Canada announcement is, "a major endorsement for Neptune's NKO™ and augers well for a Phase 1/11 approval for Acasti's CaPre™ drug candidate.

This endorsement also dovetails into Nestle's recently announced creation of Nestle Health Science division, (which is) designed to pioneer a new industry between food and pharma and develop products to prevent and treat health conditions such as diabetes, obesity, cardiovascular disease and Alzheimer's disease, " Mr. Cornwell added.

He also noted that Neptune's work with Nestle is currently in clinical trial and added this editorial note:

"Investors not aware of such developments - soon will be!"

To read the full news release about Health Canada's endorsement please click here.