Stocks’ Details

Suda Pharmaceuticals Limited

Slow growth in the Health expenditure - a cause of concern: Suda Pharmaceuticals Limited (ASX: SUD) has via a release stated that the company & Zelda have entered into a feasibility and option agreement for the delivery of Zelda’s pharmaceutical-grade cannabis medicines through the firm’s proprietary technology of oral muscular spray. As per the terms of the agreement, Zelda will pay an option fee of $200,000 to the firm, which includes an upfront receipt of $100,000. Whereas, the remaining $100,000 will be received in downstream milestone payments. Zelda will also fund the pre-agreed project expenditure.

For the FY 2018, the company reported a net loss of $5.46 Mn vis-à-vis $1.24 Mn reported in the FY 2017. This increase in loss was due to the legal settlement fees with the receiver of HC Berlin pharma AG. Going forward, we presume that the stronger US Dollar & the weak economic outlook is impacting the health expenditure per se & hence will have its spill over effect on the revenues of the firm going further.
 
 
 
SUD’s Bioavailability of various drug administration routes (Source: Company Reports)

Meanwhile, the stock price has fallen by 40.50% over the past six months and is trading close to 52 weeks lower level. Hence considering the slow growth in the Health expenditure due to weak economic outlook, we advise a wait & watch strategy to investor on the stock at the current market price of $0.005 (down 16.667% on December 06, 2018).
 

FBR Limited

‘Hadrian X’ may lead to optimization of cost & market expansion: FBR Limited (ASX: FBR) has via a release stated that the company has mutually decided to discontinue the existing pact with Caterpillar Inc. FBR’s CEO said that due to the unavoidable strategic necessities this decision has been taken. Both parties have clarified that in spite of the scrapping of the current arrangements they are open to future opportunities to collaborate.

The corporate presentation for the month of December stated that the firm has introduced a disruptive technology in the automated construction space by coming up with the revolutionary “Hadrian X” construction robot. This is a patented 3d robotic block plotting system. ‘Hadrian X’ would provide for the automatic handling, cutting and digital placement of the blocks used to construct a house. The technology would lead to safety, speed, accuracy and waste reduction resulting into better management of operating costs.

The next twelve months has a lot in store for the FBR considering the completion of houses structure via its Hadrian X, demonstration of WaaS model in the pilot program and continued development of proprietary software products. These developments in the forthcoming year will produce immense opportunities for the company that would lead to the expansion of its revenues exponentially. The company reported a net consolidated loss for FY18 at $7,115,679 vis-à-vis a loss of $2,567,107 in the previous FY2017.
 
 
 
 
Hadrian X unique model (Source: Company Reports)

Meanwhile, the stock price has fallen by 17.65% over the past six months as on 5th December 2018. Hence considering the opportunities that would be created due to the automation, we advise a wait & watch strategy on the stock at the current market price of $0.135.
 

Telix Pharmaceuticals Limited

Growing collaboration – catalyst for future growth: Telix Pharmaceuticals Limited (ASX: TLX) has stated via a release that the company has collaborated with the Nihon Medi Physics Co ltd which is a leading manufacturer and supplier of the radiopharmaceuticals in Japan. This collaboration has been entered in order to measure the feasibility of actinium antibodies for the treatment of clear-cell renal cell cancer (ccRCC).

The company has said in their Q3 FY 2018 update that they have progressed well with their various clinical trials & their first revenues from the illumet prostate imaging cold kit is slated to be delivered in the Q4 2018.

The company reported Net loss attributable to the shareholders for 1H 2018 at $5,190,974. Majority of this loss was on the back of heavy depreciation attributable to the company’s assets as well as exchange differences and share-based payment expenses.

TLX’s manufacturing and distribution network (Source: Company Reports)

Meanwhile, the stock price has fallen by 6.72% over the past six months as on 5th December 2018. Hence considering the broad distribution network the company enjoys the robust progression with the clinical tests at various geographies on account of the collaborations with various players, thus, we maintain our “Hold” recommendation on the stock at the current market price of $0.635.
 

Biotron Limited

Clinical trials success: Biotron Limited (ASX: BIT) has stated via a release that the clinical trials relating to the BIT-225-009 phase 2 and the HIV 1 clinical test have provided encouraging results. These results indicate that the BIT 225 is having a strong & unique impact upon the patients apart from the viral suppression which was seen with the current antiretroviral drugs.

The company has reported a loss attributable to the shareholder to the tune of $1,593,645 vis-à-vis $3,093,405 reported for the previous year. This was due to the fact that the company hasn’t yet garnered any income from core operations as the clinical trials are still going on.


BIT’s trial data details (Source: Company Reports)

Meanwhile, the stock price has risen by an astounding 536.36 over the past six months as on 5th December 2018. Hence considering the astonishing surge in the stock and the successes achieved in various clinical trials, we advise a wait & watch strategy on the stock at the current market price of $0.140.


 
 
Stock Price Comparative Chart (Source: Thomson Reuters)

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