Tuesday, 26 July 2011

Influential Writer Pegs New Era For Neptune/Acasti


Neptune Technologies & Bioressources
TSXV: NTB - NASDAQ: NEPT
Basic Shares: 48.2 million
Fully diluted: 53.9 million

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Widely followed, U.S.-based biomed writer, M.E. Garza in a just released commentary noted that three recent events have propelled Neptune onto a much higher stage and brought it to a valuation that could be over five times higher than where it currently sits.

In other words, he can see the market cap rising from its current $200 million to $1.2 billion once Neptune's 60% owned subsidiary, Acasti Pharma, successfully concludes the Phase II clinical trial of its drug candidate CaPre.

Bold predictions!

But given the stellar successes of competitors with similar but possibly less effective products than what is expected of CaPre and the appointments of Dr. Anthony Holler to Neptune's board of directors and Dr. Harlan Waksal to Acast's executive offices, it isn't an outrageous proposition.

"It goes without saying that the go ahead into Phase 11, and the (two) recent appointments, represent the beginning of a new era for Neptune and its subsidiary, Acasti," Mr. Garza wrote.

"The appointments are specifically symbolic of a new confidence and willingness to bring in experts who have "been there, done that." This should help the execution of this evolving multi- billion-dollar play," Mr. Garza concluded.

Biomed released its first commentary on Neptune/Acasti in mid-April. The stock was $2.30 (USD) at the time and has almost doubled in the past three months.

To read the full report, please click here.