Emmetten, Switzerland and San Diego, CA, Feb. 8, 1999 (PRIMEZONE) - Maedel's Mini-Cap Analyst, which specializes in identifying exceptional small companies with five to tenfold profit potential, today issued an analyst report on Genetronics Biomedical Ltd., San Diego, Ca., stressing that it believes "Genetronics is well positioned to double (its valuation) in the next half a year to nine months-sooner if recognition grows more quickly."
"There is a significant upside beyond this over the next two years," the new report said. "From an investment perspective, we can argue that (Genetronics') business focus, merits and potential are as substantial as the 'sexiest' biotech companies in the market."
The analysis issued by Maedel states five reasons why it is bullish on Genetronics. These are:
1. "It is the market leader in applying electroporation to human medicine. Electroporation therapy, or EPT, uses an electrical charge to cause pores to open in a targeted cell so that a drug or gene can readily enter it to perform a beneficial function....The commercial potential of EPT for oncology alone (specifically, highly prevalent solid tumor cancers) is shaping up to be in the billions of dollars."
2. "Genetronics is not dependent on oncology alone....EPT can be classified as a drug delivery technology that is clearly applicable to a host of diseases and medical challenges. This broad platform is protected by an intellectual property portfolio."
3. "GEB already has a worldwide (excluding Canada) licensing deal for oncology with a Johnson & Johnson subsidiary named Ethicon. J&J is estimated to have injected US $10 million into GEB to date and brings all the credibility and validation that an eminent pharmaceutical company can bring to a junior when it completes such a deal. J&J plans to launch Genetronics' EPT in possibly a dozen countries within a relatively short time span, realistically within the first quarter of 2000."
4. "Sales outside of North America kick in during 2000-with the conviction, energy and capital of Johnson & Johnson behind them. Bottom line: Genetronics [cash flow] will be accelerating shortly."
5. "(Genetronics) is already listed on two senior exchanges: the TSE in Canada, and, as of December, AMEX. The company has been strongly backed by European financial institutions. We now expect to see this relatively unrecognized, impressive, story develop more profile in the U.S. investment community in 1999."
The analyst report concludes that Maedel's is "looking for a doubling of the valuation and stock price within the next six months, and much more appreciation over the next two years."
Maedel's Mini-Cap Analyst is an investment newsletter focused on mini-cap stocks with outstanding reward/risk ratios. It targets resource, technology and industrial companies with the potential for extraordinary stock price appreciation potential. The satisfactory surpass 100%. The exceptional have exceeded 1,000% and 2,000%. Editor Neil Maedel, an ex-trader and 19-year veteran of the mini-cap market, lives and works in Switzerland. He has been writing investment newsletters since 1988.