Biotron Limited (ASX:BIT) has shown a huge growth potential this year. Current market capitalization of Biotron stands at $90.32 mn as on October 31, 2018 i.e., today. Grown from a market cap of $10 mn to the current market cap of $90.32 mn shows the growth trajectory of the company and confidence investors put on its products. The tremendous growth in market cap was the result of the major development and results for the drugs treated for HIV1 and Hepatitis C virus. Positive data results from the trials supported the move. The news regarding the results from the phase 2 trial was posted on September 18. In the month of October, company has received R&D tax incentive worth of approximately $1.07 million. An underwriting agreement of $4.7 million has been secured for the month of November 30, 2018. Phase 2 process of the Hepatitis C virus has been completed and the company is well in process of getting partnership in China. With the positive outcomes from the data report released on the drug trials for HIV1 and share prices posting new high and adding value to the market cap, Biotron secured 20 bagger status during the month of October-2018.
Positive results from the significant drug trials impacted the share price positively and created the value. The share price moved from the levels of $0.019 on September 27 to the higher levels making peak a $0.44 on October 17, to current levels of $0.15 as on October 31, 2018.
Last week the company received a six-page questionnaire including 15 questions about the company’s recent announcements.
ASX authorities have asked the company regarding the phase 2 trial, if company follows or has benchmark limit set to determine the success rate of the phase 2 trial. Whether the company has achieved the end points if they follow a benchmark limit, and if they have achieved than supporting data should be provided to the authorities and a detailed explanation to the ASX regarding the non-disclosure of the information in the announcement.
Detailed explanation regarding the measurement techniques implied recording the benefits to the patients receiving antiretroviral drugs and material to support the conclusion made as mentioned by the company in its announcement.
Explanation regarding the clinical data in relation to the previously reported laboratory-based studies, date of announcement if any, and if no announcement was made than why such disclosure was not reported to the ASX.
The company has secured a deal of approximately US$3.7 million with pharma and biotech companies like J&J and Arrowhead towards Hepatitis B virus program. Complete detailed report on the data is expected to be presented in late 2018 or early 2019 at scientific conferences. The ASX has asked regarding the expected completion of the analysis of the trial data.
ASX sought information on the identity and background of the independent HIV immunologists/ scientists who were part of the trial process.
ASX has further questioned regarding compliance and listing rule 3.1 which clearly mentions to disclose any information that can have a material effect on the share price of the listed company.
In response to the six-page query made by ASX on October 25, regarding the phase 2 trial data released, the company has sent across its response on October 30, Biotron has clearly mentioned that the company has followed all compliance and listing rule 3.1.
With the release of the response to the ASX, investors gained some confidence and the impact was well seen on the share price which made an initial rise but wrapped the session at the levels of $0.14, down 17.65% as investors remained cautious.
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