Thursday, 4 November 2010

Neptune Product Excels in Animal Tests

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

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Animal tests of a highly-refined krill oil developed by Neptune Technologies' subsidiary, Acasti Pharma Inc., showed that the krill oil was dramatically better at controlling a pre-diabetic state than the currently marketed drug called Lovaza®. Lovaza® is made from fish oil.

The Acasti product called CaPre™ reduced a marker for the disorder - impaired glucose tolerance (IGT) - by 35% after three months.

By comparison, Lovaza® showed just a 5% reduction after three months of treatment. Lovaza® is the only FDA approved prescription fish oil solely indicated for the treatment of very high triglycerides - one measure of high cholesterol levels.

A respected market research firm calculated that Lovaza® topped $1 billion in sales in 2009, with $758 million of those revenues coming from the United States. GlaxoSmithKline acquired the USA right to Lovaza® by paying $1.65 billion.

It's unsaid but clear that Neptune is at the front end of a program to ultimately prove that it should or could be worth as much as Lovaza®. Human clinical studies are necessary and are the next step in providing further weight to Neptune & Acasti's argument that much greater value is to come for their respective shareholders.

To read more about the animal test, please click here.