Company Brief - PLD and VHL

VHL - Virax Holdings

As of 23 May, VHl has 107m shares, with cash at Dec 06 at $1.416m. In the Dec half year, operation cash outflow was $2.9m. According to 9 Nov 06, the rights issue raised $2.36m - this is not accounted for in the first half year account.

Assuming an operations cash burn of $2.8m a year, without other significant events, The remaining cash at Jun 07 will be around $1m. This infer a cash based NTA of 0.9 cents. The current price of 13 cents makes P/NTA of 14 which is relatively high.

Taking into account of the $1m payment from Transgene, the P/NTA is
about 7 which is still high but worth looking. The thing going for VHL
is the progress from the Transgene company - upon successful milestones
may release further licence payments. VHL's own lead product is
starting Ph II with another at PhII/Ib.

It is certainly worthwhile to keep an eye on VHL to the end of 2007. The price of 13 is high, but worth serious consideration if it levels at 7cents.


PLD - Portland Orthopaedics

Full approval was granted to PLD for the M-Cor primary hip replacement and use of related instrumentation by the TGA in Aust. This product status has been factored into previous analysis (not blogged yet) - so the product rating remain the same. However, the share price has dropped significantly with no strong reasons apart from PLD taking over distribution responsibilities. The P/NTA stands at 2.85 and is worth buying.

Dislaimer: I own stocks in PLD. I was but no longer a holder of VHL stock.