Once-favored healthcare play back in the game with new product?
In biopharmaceutical news today, Angiotech (TSX: T.ANP, Stock Forum), with listings on the TSX and the NASDAQ, announced the market launch of its “superficial wound closure” product QUILL™ SRS MONODERM ™. The product will be made available for sale in the U.S. and in Europe. In describing the product, the news release states: “Quill ™ SRS MONODERM ™, which is made from a rapidly resorbing polymer, is intended primarily for superficial wound closure applications and indicated for soft tissue approximation where use of an absorbable suture is appropriate.”
The stock price, meanwhile, has seen better days – and that’s putting it mildly. In the summer of 2005 it was trading at around $18.00. It now trades near $2.90.
Posting on the Angiotech Bullboard is hit and miss in terms of frequency. There were two posts in April and none since, though activity in March was a little better. Here is what smallbeer had to say about the company on May 5:
If you look at the ANP website, there are some presentations where management makes the case that they are using the existing businesses as a cash cow to feed new products. The numbers on the presentations show that the existing businesses generate about $1.00 per share (after interest expense).
Management believes that the new products will be valuable but it is taking more time than they had originally estimated for that to happen. Management is saying that sales of the Quill sutures are finally taking off. And this latest news release about Cook selling the peripheral stent might be some further evidence that the cash cow strategy is starting to work.
And here’s an interesting post from goldtoe, who made this analysis on January 22 of this year:
ANP was a market marvel back around 1999 or 2000. Seems to me they hit highs of $120/share. I think those shareholders are long, long gone.. at least i hope nobody rode her all the way down. We'll probably never see any where close to them thar prices ever again but sometime in the future of futures $15 to $20 bucks is still in play for a company that makes the right decisions. Funny i can remember when it traded over $100 i thought boy, i wish i could buy a couple of K.. well now i can.. lol.. and hey the sales will come at some point. They are well respected in the industry and worth a bet at these prices. Many funds will look for pharma companies to buy in these markets. Many will or have already bought ANP.. seems like maybe a nice turnaround company and the economy doesn't affect sales. Good luck to those taking the plunge, probably not much downside risk but then again with these markets how can anyone be certain? I believe $6.50 to $8 is a target that they can reach [sic].
Maybe, maybe not – but to find out, you’ll have to stick with investors on the ANP Bullboard.
