ALCHEMIA LIMITED (ACL)



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General Information
Company Name: Alchemia Limited
Stock Code: ACL
Website: www.alchemia.com.au
GICS Sub-Industry: Pharmaceuticals
Market Cap ($M): 117
Equiv. Shares (M): 324

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 0.360 $ 0.365 $ 0.370 $ 0.360 $ 0.365 34,223 $ -0.005  -1.370 %

Current Broker Consensus Recommendation more
Recommendation: Buy
Recommendation Date: 23rd May 2013
12 Month Target Price (average): $0.71
Brokers Surveyed: 1

Company Overview

Business Description:
Alchemia Limited (ACL) is a biotechnology company which develops new human therapeutics based on its proprietary drug discovery and expands drug targeting and synthesis technologies in Australia and USA. ACL’s pipeline of assets is built on two platform technologies: HyACT (targeted cancer delivery) and VAST (drug discovery). FDA’s approved drug is Fondaparinux that is already in market.

Strategy Analysis:
ACL will use its technologies to develop a sustainable pipeline of patented products with which to target large and growing pharmaceutical markets. Alchemia reported net loss of $5.9m for the half-year ended 31 December 2012. Revenue from ordinary activities were $9.44m. Basic and Diluted EPS were (2.1) cents compared to (2.9) cents last year. The net operating cash outflow was $7.71m compared to an outflow of $4.67m in the pcp. No dividend was declared.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2012  A -15.1 -6.2 -- 0.0 0.0 0.0 --
2011  A -13.4 -7.0 -- 0.0 0.0 0.0 --
2010  A -8.8 -5.0 -- 0.0 0.0 0.0 --
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2010 A 2011 F 2012 F 2010 A 2011 F 2012 F 2010 A 2011 F 2012 F
Alchemia (ACL) $118 M -- -- 0.7707 -- 13.7218 7.7495 0.0000 0.0000 0.0000
Acrux Limited (ACR) $641 M -0.8713 0.9752 0.7412 86.7117 43.8997 25.2128 0.0208 0.0196 0.0454
Pharmaxis (PXS) $56 M -- -- -- -- -- -- 0.0000 -- --

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
ACL 0.20 20.5 4.16 0.31 --
Market 0.83 14.4 1.22 1.88 1.72
Sector 0.91 20.0 2.40 0.54 6.80

Directors
Name Position Start Date
Mr Melvyn John Bridges Non-Executive Chairman 02 October 2003
Mrs Nerolie P Withnall Non-Executive Director 27 October 2003
Dr Tracie Ramsdale Non-Executive Director 26 April 2007
Mr Carlo Montagner Non-Executive Director 07 March 2008
Mr Nathan Drona Non-Executive Director 22 March 2013
Ms Leigh Bonney Non-Executive Director 28 September 2012
Ms Susan Kelley Non-Executive Director 22 March 2013
Dr David U'Prichard Non-Executive Director 28 September 2012

Management
Name Position
Charles Walker Chief Financial Officer,Chief Executive Officer
Stephen Denaro Company Secretary
Wim Meutermans Vice President of Discovery
Michael West Vice President of Intellectual Property and Technology Transfer
Tracey Brown Vice President of Preclinical Development, and Acting Vice President of Development

Substantial Shareholders
Holding Name
29,415,489 (10.48%) Orbis Global Equity Fund Limited
23,976,837 (8.54%) Allan Gray Australia Pty Ltd

Calendar of Events
Date Event
26 February 2014 Report (Interim)
15 October 2013 Report (Annual)
21 August 2013 Report (Prelim)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

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