ORLANDO, Fla., July 10, 2007 (PRIME NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies, Inc., announced that it has issued an Osteologix, Inc. (OTCBB:OLGX) first quarter 2007 research update.
Tony Telan, MBA, RedChip Research Analyst, and Dr. Lijie Zhong, M.D., Ph.D, RedChip Research Analyst, wrote in the report:
"Osteologix announced it completed enrollment in the 'STRONG Study,' its phase II clinical trial of NB S101, a new and improved dosage form of Strontium, in the form of Strontium Ranelate, has been recently approved and introduced in several European countries to treat osteoporosis. The Company is approximately seven months from obtaining phase II clinical results. We expect that if the results meet the target endpoints, the stock will see substantial appreciation. At current price levels, OLGX deserves a Buy rating.
"We initiated coverage of Osteologix in January with a Speculative Buy rating and a 12 month price target of $3.88. Our target price is based on the present value of the estimated future share price of $7.56 and a 10 percent discount factor. If revenues reached $42 million in 2014 and 50 million shares were outstanding, Osteologix would generate revenues per share of $0.84 in 2014. At the biotech industry's current 9 times P/S multiple, this implies a future price of $7.56 for OLGX shares. We believe that at current price levels, this stock has a relatively low level of risk with enormous upside potential."
About RedChip Companies, Inc.
RedChip Companies is an international small-cap research and financial public relations firm with offices in Beijing and Orlando and affiliates in New York and San Diego. RedChip delivers measurable results for its clients through its extensive international market expertise as well as its comprehensive platform of products: RedChip Research(tm), Traditional Investor Relations, Digital Investor Relations, Institutional and Retail Conferences held throughout the United States, and RedChip Radio(tm). To learn more about RedChip's products and services please visit: http://www.redchip.com/visibility/services.asp.
Research Disclosure
The analysts contributing to this report do not hold any shares of OLGX. Additionally, the analysts contributing to this report certify that the views expressed herein accurately reflect the analysts' personal views as to the subject securities and issuers. RedChip certifies that no part of the analysts' compensation was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the report. Additional information on the securities mentioned in this report is available upon request. This report is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the report should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed herein are subject to change. RedChip Companies Inc. is an affiliate of the Aurelius Consulting Group, Inc. Osteologix, Inc. is a client of the Aurelius Consulting Group, Inc. and of RedChip Visibility, a division of RedChip Companies. OLGX paid RedChip Visibility $32,400 for the RedChip Visibility Research Program, which includes this report.