Company Brief - ANX - Anadis

Price (18/10/07): $0.10
Shares (25/09/07): 103,668,014

Anadis is a unique biotech in two ways. Firstly, for a very small biotech company (Market Cap $10m), it has a product on the shelf already. Secondly, its technology platform based on polyclonal antibodies allow its product to be clasifeed as food rather than drug (according to companies. This implies that the clinical development, manufacture and trials of the products are faster and cheaper.

The product pipeline seem to be too broad and most are at the pre-clinical stage. The products target range from influenze, oncology to anti-bioterrorism. Diversification in potential products in general is a good thing but the broadness of this raises concern about ability to focus.

Briefly looking at the cash position, at the end of the last financial year, its cash remaining ($672k) is only one-fifth the cash required for operations of the last year ($3m). If the trend continues, ANX would be penniless before Dec07. Since mid 2007, it had negotiated a $5m line of credit, and raised another $700,000.

The poor cash position alone is enough for a "Don't Buy" recommendation, without needing further analysis. The thing to watch for would be how much of the $5m credit will be used and how much shares will be issued.

Recommendation: Don't Buy