Friday, 29 July 2011 13:01
Neptune Technologies & Bioressources (NASDAQ: NEPT) has been getting plenty of attention and on Friday, it may have caught the attention of one it's most credible supporters on the street thus far.
Joe Pantginis, the Roth Capital analyst with an excellent track record, and a PhD in biochemistrygood has just issued a buy recommendation on shares of NEPT with a $9 price target. What makes this endorsement even more important is the fact that Pantginis also covers Amarin (Nasdaq:AMRN), the pharmaceuticalized fish oil company with a $2.2 billion market cap in basically the same space as NEPT. He currently estimates a $21 price target on AMRN shares.
As we told our readers earlier in the week, their go ahead into Phase II and the two recent appointments of key executives represent the beginning of a new era for Neptune and its subsidiary Acasti. The appointments, are specifically symbolic of a new confidence and willingness to bring in experts who have "been there, done that." This should help the execution of this evolving multibillion-dollar play.
"We are initiating coverage of Neptune with a Buy rating and $9 price target," writes Dr. Pantginis. "We believe the company has the potential to be a major player in the omega-3 and management of cardiovascular risk markets. The company has developed what we believe to be a differentiated omega-3 formulation not from fish oil, but rather krill (harvested from the Antarctic). Krill based omega-3 oils have shown evidence of having higher potency than currently marketed fish oils, including prescription strength omega-3’s such as GSK’s Lovaza and Amarin’s AMR101. The main reasons for this increased potency is much higher bioavailability of krill based omega-3’s (krill omega-3’s are phospholipid bound compared to fish oil omega-3’s being triglyceride bound) as well as the
presence of the powerful antioxidant, astaxanthin."
We told our premium subscribers to watch the stock for a technical move on Thursday and continue to beleive the company will be valued much higher in the future. After the Roth report was issued, shares jumped 8.5% to an intra-day high of $4.35 after closing at $4.03 the previous session. We were the first news portal to initiate coverage on the stock and agree with Dr. Pantginis that Neptune warrants a higher valuation based on its multipronged approach to krill based omega-3 and anticipated growing revenue from nutraceutical use as well as pharmaceutical applications.
Our Worldwide Trade Catalyst Calendar for biotech investors complete with forward looking entries as far ahead as 2014 shows some detailed catalyst entries for Neptune. Upcoming catalysts include:
• A pending worldwide partnership with Bayer Healthcare
• Clinical studies for health claims validation in E.U.
• New marine health ingredients on the market.
• Completing functional food trials with Nestle and Yoplait to validate health claims and move towards commercialization
• Progressively building manufacturing capacity expansion from 130,000 kg to 430,000 kg
• Announcement of a major partner in the mass market
Prior to joining Roth, Dr. Pantginis was a senior biotech analyst at Merriman Curhan Ford. Dr. Pantginis was also a senior biotechnology analyst at Canaccord Adams, Commerce Capital Markets and Ladenburg Thalmann & Co., Inc and others. Prior to his tenure on Wall Street, Dr. Pantginis served as an associate manager/scientist of Regeneron Pharmaceuticals' Retrovirus Core Facility. Dr. Pantginis received an M.B.A. in Finance from Pace University; a Ph.D. in Molecular Genetics and an M.S. from Albert Einstein College of Medicine; and a B.S. from Fordham University.
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