Wednesday, August 1, 2007

Accentia Biopharmaceuticals Inc

Accentia Biopharmaceuticals Inc is a NASDAQ listed security that has been trading in a range between $1.96 and $5.59 over the past year. With 33,597,680 shares outstanding, a recent price of $2.27 gives a total market capitalization of $67,531,336. While there are certainly larger companies, Accentia Biopharmaceuticals Inc has definitely earned its place in the pack. Last year, Accentia Biopharmaceuticals Inc created $-2.16 in earnings for every share outstanding.

Accentia Biopharmaceuticals Inc is currently priced by the market at 0.00 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share below $1 a share, Accentia Biopharmaceuticals Inc is unlikely to be an interesting value proposition. Consistent earnings are the key to high valuations and this security is not on its way.


Jeffrey said...

Accentia Biopharmaceutical, aside from already having about $20 million in current revenues has three late stage potential blockbusters. Thomson Pharma research listed in their January 2007 "The ones to watch" listed Accentia's lead Phase Three FDA fast tracked drug Sinunase as one of the top 5 phase 3 potential blockbusters. This could be found Here. It is estimated that 39 miilion americans suffer from Chronic Rhinosinusitis. Their is no FDA approved treatments. The Mayo Clinic discovered that many CRS sufferers are allergic to Fungus in the sinuses. The are using an already approved drug Amphotericin-b to treat this disorder. If approved this could generate billions in revenue for Accentia Biopharmaceuticals. They also own 70% of biovest international, which trades on the OTC.BB under the ticker symbol BVTI.ob. BVTI.OB maintain a current market cap of $60 Million dollars Biovest has an already approved product being launched in September 2007 called Autovaxid. This product can produce personalised cancer vaccines in a product the size of a fax machine makeing it possible to mass produce personal medicine. They also have a FDA fast tracked Phase Three NHL cancer vaccine that has been in development at the NCI for ten years that has shown to keep paitents in complete remission and those that relapsed had their second remission become longer then the first. Then the just filed a pre -ind with the FDA to go Phase Three with the autoimmune drug Revimmune. Their first trial will be aimed at MS. This drug has been used on hundreds of paitents and saved many lives. Dr Howard Weiner, who is the Robert L. Kroc Professor of Neurology at Harvard Medical School. He is founder and director of the Partners Multiple Sclerosis Center at the Brigham and Women’s and Massachusetts General Hospitals in Boston and codirector of the Center for Neurological Diseases at the Brigham and Women’s Hospitachief just went on a nationwide tour expaining how Revimmune could be a blockbuster treatment for MS. ABPI currently has a tiny $65 million market cap which I believe could be 1 Billion in a flash.

Jeffrey said...

Looks like a great opportunity!