Anyone have any thoughts on this share..? Has a history of skyrocketing..
Here is a recent article on it from the Age..
Genepharm is on the verge of announcing the details of its much-anticipated retail pharmacy distribution plan and betting types are suggesting the generic drug maker will sign multiple deals with all three distributors - Sigma Company, Mayne Group and Australian Pharmaceutical Industries.
Speculation of an exclusive agreement with Sigma peppered the market over Christmas and sent Genepharm's share price above $1.50.
But the company has been taking its time talking to potential partners and is believed to have come up against some reluctance from all three to commit to an exclusive arrangement or an alliance that extends beyond an agreement merely to distribute Genepharm's products to chemists.
Behind the scenes, Genepharm's management is believed to be frustrated by a "lack of vision" among the distributors regarding their strategy for generic medicines, which is expected to double into a $2 billion market by 2008.
Chief executive Dennis Bastas said the company had assessed the merits of both exclusive and non-exclusive distribution deals and guidance would be provided to the market by the end of June.
"It's been in the works for a while and we have now come to a point where we're prepared to unveil what our strategy is and discuss why we've taken the path we've chosen," he said.
Bastas, a former Coles Myer and Village Roadshow executive, has recently travelled around the country briefing investors on his strategy, which could be one reason Genepharm shares have risen markedly over the past few days.
The stock has gained almost 15 per cent so far this month, closing at $1.21 yesterday.
ABN AMRO Morgans analyst Scott Power believes positive sentiment in the generic drug sector has helped - Arrow Pharmaceuticals is also trading strongly - as has the recent Federal Budget.
"I think the essence of the movement is the interest in generics, generally," Power said. "It's a very sexy sector."
Genepharm plans to register and market between 40 and 50 drugs by 2007, targeting blockbuster drugs as they come off patent.