Lets kick off the New Year with a stock pick. Though you may want to take it with a grain of salt since InvestSMART is a major shareholder of this company (shares are escrowed until Janurary 2007). Being a major shareholder puts us in a unique position of knowing a fair bit about this company and its potential. If nothing else, do your own research and watch this space carefully around mid February when we find out the results of their current clinical trials.
Narhex Life Sciences (ASX : NLS) is a drug development company that has developed a library of antiviral protease inhibitors for the treatment of HIV infection and AIDS. Narhex raised $8M and floated on the ASX on 12th January 2005. It still has over $6.5M in cash reserves, which it will use to perform further clinical trials and commercialise the technology.
Nar DG 35 prodrug is the first of their compounds to be selected for clinical development and has completed pre-clinical testing in animals & and Phase I and early Phase II clinical trials in humans.
We believe Narhex had a good year in 2005 in developing the drug further but poor share price performance due to lack of liquidity more than anything. The start of further clinical trials in early 2006, as announced to the ASX yesterday, has the potential to greatly increase the profile, and thus the share price, of Narhex if successful.
The announcement made yesterday said... "the purpose of the study is to test an improved formulation of DG17 which they believe will increase the extent and reliability of its absorption. The study should be completed and the data analyzed and available by end March 2006, although some interim data from the first phase of the study may be available earlier."
For a full copy of the press release please click here.
For more information about Narhex, please visit www.narhex.com.
LabTech Limited - Float/IPO expected to close 31st January 2006
Labtech's MicroStreak® system automates the processes associated with the preparation, inoculation and streaking of Agar Plates, the mainstay of diagnostic microbiology analysis around the world. The system's high speed of preparing agar plates is intended to replace many of the manual processes found in labs today.
The Institute of Clinical Pathology and Medical Research suggest in the Company's Independent Expert Report that there are at least 12 million agar plates used every year in Australia alone. The report goes on to say "assuming 2 minutes set up time per plate equates to at least 300 person years of effort just streaking agar plates. From this they conclude that laboratories across the world involved in diagnostic pathology employ tens of thousands of person years every year. A technology that can economically automate this step has a considerable market to access."
Click here for more information.
Barranco Resources Limited - Float/IPO expected to close 18th January 2006
With the gold price passing US$540 per ounce, and many brokers suggesting it has further to run, InvestSMART believes gold companies will continue to be in the spotlight in 2006.
Barranco Resources N.L. is a diversified mineral exploration company with a primary focus on gold. The Directors have assembled an attractive portfolio of exploration properties in Western Australia containing interests in gold, nickel, copper, lead, zinc and uranium. All exploration projects are 100% owned by Barranco.
Click here to learn more and request a prospectus.
The InvestSMART Team