Tuesday, 5 July 2011

New Analyst Report + Major Add to Neptune Board

Neptune Technologies & Bioressources
NTB - TSX V) (NEPT - NASDAQ)
Basic Shares: 48.2 million
Fully diluted: 53.9 million

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With Neptune adding a biomedical heavyweight to its board and Acasti winning Health Canada clearance to begin its long-awaited phase 11 clinical trials, Catalyst Equity Research analyst, Robin Cornwell, issued another STRONG BUY rating for both Neptune and Acasti shares today.

The phase 11 trials announced June 30th, brings Acasti into the biotech arena where many more eyeballs will be the company and where Mr. Cornwell expects it to do very well in the trials involving about 430 patients.

Mr. Cornwell was also waxing eloquent about the stellar appointment of Dr. Anthony Holler to Neptune's board.

Dr. Holler was one of the original founders of ID Biomedical Corp - that started with a market cap of $25 million and was sold just six years later under his leadership to GlaxoSmithKlein for $1.7 billion.

With the July 5th announcement of Dr. Holler's board appointment, Mr. Cornwell wrote in his report that "In our opinion, Neptune shares are currently undervalued by at least $3.00 per share."

Mr. Cornwell repeated his 12-month target price of $2.75 for Acasti shares.

Dr. Holler, who earned his medical degree from the University of British Columbia, also sits on a number of other company boards, among them he acts as Chairman of the Board for CRH Medical Corporation.

He acted as CEO of ID Biomedical from 1999 to 2005 when it was sold. The company developed medical products and technologies for the diagnosis, treatment and prevention of human infectious diseases.

His addition to Neptune's board promises to bring a great deal of depth in key areas such as deal making with big pharma, capital markets in general, strategic macro business operations and last but not least, he will bring key scientific community contacts.

The news about Dr. Holler's appointment followed on the heels of an earlier news release that NeuroBioPharm (Neuro), Neptune's wholly-owned subsidiary, filed a non-offering prospectus in preparation for Neuro being listed on the TSX Venture exchange. Once the prospectus is accepted, the aim is for Neptune to own about 80% of Neuro on a fully diluted basis and it could take up to two years before Neuro is listed.

In the prospectus, each holder of Neptune common shares, on the unstated dividend record date, would receive one Neuro unit for every 12.25 Neptune common shares. Each Neuro unit will consist of one class A share of Neuro and one third of a Series 2011-1 warrant. Each full warrant would then allow the holder to purchase one Class A Neuro Share at a price of 40 cents. That right of purchase would then expire on the earliest of either 15 days after the listing of the Class A Shares or on April 12, 2014.

To read the entire Neuro news release, please click here.