
LOS ANGELES, CA -- (Marketwire) -- 02/22/13 -- In January 2013, newly trading AntriaBio, Inc. (OTCQB: ANTB) acquired one of the most-interesting and buzzworthy assets we've seen in some time from a private company called PR Pharmaceuticals.
AntriaBio swooped in to snag the intriguing lead diabetes product, AB101, after that firm had already invested more than $100 million into the formulation, manufacturing and intellectual property development of the injectable once-a-week basal insulin solution for diabetics who are otherwise forced to take shots on a daily basis.
The team at AntriaBio was getting a great deal of attention at the recent Healthcare Conferences in San Francisco -- well before the company was even publicly trading as it is now. Why? Not only because the lead product had already seen substantial private capital development investment, but also because AB101 offers potential significant advantages over basal insulin products offered by Sanofi-Aventis and Novo Nordisk; whose products Lantus and Levemir have a combined $8B in annual sales.
From an investment standpoint, we like AntriaBio because the value for the lead product is clearly established but has not yet been recognized by the public markets. As their story begins to spread and more analysts begin to recognize its value, the stock price of this very-low-float company should begin to increase.
Looking at the situation from an industry standpoint, we have seen dozens of stories and several examples of industry titans buying once discarded unique assets with substantial market potential, for big money. See Amgen's acquisition of deCODE Genetics for $415MM in December 2012 as one.
"The company (deCODE) declared bankruptcy in 2009 and was rescued by some of its original investors, who acquired the firm and its assets for around $14 million and went on to invest another roughly $45 million."
Literally weeks ago Baxter/Cangene stepped up to acquire an investigational hemophilia compound and other assets technologyfocus.ca%2fcangene-to-acquire-late-stage-hemophilia-b-product%2f">from the bankrupted Inspiration BioPharmaceuticals.
These biotechnologies were bought for pennies on the dollar and once their true value came to be recognized the acquisitions led to substantial profits.
The same should hold true for AntriaBio -- especially given that the incidence of diabetes is increasing rapidly and that this one-a-week insulin replacement therapy could be very appealing to individuals with diabetes who need to mimic healthy pancreas function by delivering insulin consistently day and night (basal insulin) and as needed following meals (bolus insulin).
Most Popular Stories
- World Bank: Rich Countries Must Curb Emissions
- Social Media Campaign Increases Organ Donor Registrations
- Airport Garners Social Media Award
- What Will Happen When Quantitative Easing Ends?
- MillerCoors Taps New Hispanic Ad Agency
- Immigration Reform Would Decrease U.S. Budget Deficit
- Aetna Leaving California's Individual Health Insurance Market
- Tea Party Wants to 'Audit the IRS'
- Calories Count: Starbucks to Post the Numbers on Menu Boards
- Honda Says Sorry About the Lack of Electric Fits
News-To-Go
Advertisement
Advertisement
News Column
Once-a-Week Insulin Shot Could Help Growing Diabetes Patient Base and Spell Huge Profits for Investors
Feb 22 2013 12:00AM
Marketwire
Advertisement
Story Tools



