Friday, 3 June 2011


Neptune Technologies & Bioressources

Basic Shares: 48.2 million
Fully diluted: 53.9 million


The first analyst's report by Catalyst Equity Research focusing exclusively on Neptune subsidiary, Acasti Pharma Inc., came out today and it carried a BUY recommendation, plus a one-year target share price of $2.75.

That's well above Acasti's (APO) closing price of $1.31 on Friday.

The initiating report by analyst Robin Cornwell, which you can find here, also delved into the finances of Acasti and its future prospects given the dramatically better results Acasti's main product - its drug candidate, CaPre, - has shown over its competitors.

(Just as a reminder, CaPre's only commercialized competitor is Lovaza - a fish-oil based drug - that enjoys annual revenues of $1.1 billion.)

To get to the commercial stage, Acasti applied to Health Canada for a Phase 11 clinical trial that Mr. Cornwell writes will involve about 430 patients and take 12 to 18 months to complete.

As of the writing of this, Health Canada hasn't given its permission yet but Mr. Cornwell expects that soon. See page '3' of his report to read more.

It's also important to read what he writes about Acasti's other main competitor - Amarin Corporation and it's fish-oil based drug candidate, AMR101.

Amarin (AMRN) stock blew through the roof after it announced Phase 3 clinical trial results that handily beat Lovaza.

Please read what Mr. Cornwell wrote on Amarin at page 4 of his report.

He also wrote that Acasti has an estimated $2.6 million in working capital as of Feb. 28 this year. With the announced, but yet-to-be-completed rights offering, Mr. Cornwell calculated Acasti will have $5.6 million in working capital. In addition, Acasti has two other products it's expecting to market soon, Onemia and Vectos, that will bring in a conservatively estimated $3 million by 2013.
Acasti's Phase 11 clinical trial is expected to cost $2.4 million so given all of the above paragraph, it should be well positioned to cover costs.

To read Mr. Cornwell's financial outlook for the year ending Feb. 28th for both 2012 and 2013, please see the top of page 7 in his report.

Meanwhile, another glowing report on krill oil in general and Neptune specifically came out from Q1 Publishing and was featured on Stockhouse today.

To view that, please click here.