PREMATURE EJACULATION spray firm to list on AIM

Biotech stocks are notorious for
disappointing but Plethora
Solutions is one company that
looks like it will be able to satisfy
investors next year. Its lead
product is a topical spray for
premature ejaculation, PSD502,
which recently had positive
results from a Phase II trial
leaving the company in prime
position to secure a lucrative
licensing deal in the first half of
2006.
At the moment sufferers are
often given anti-depressants as a
treatment which bring with them
their own side effects and
problems and are not an ideal
solution. As there is no
specifically-approved product
available it is thought the total
market could be worth as much
as $5 billion a year.
Johnson and Johnson is
currently developing an oral PE
treatment, Dapoxetine, but it was
rejected for approval by the FDA
earlier in the year which means
that Plethora’s product could be
the first to reach the market if all
goes well with the licensing
partner.
GlaxoSmithKline and Pfizer are
both thought to be on the
lookout for a PE treatment and
there should be no shortage of
interested parties. Plethora has a
number of other Phase II
products in its portfolio which
will also be entering huge
markets if they are successful.
It is working on a drug called
PSD506 to combat urinary
incontinence or overactive
bladder which is already licensed
to major pharma company Roche.
Current treatments have been
associated with severe dry mouth,
which has led to people not
taking medication. The global
yearly market for incontinence
pads and adult nappies alone is $5
billion, which CEO Steven Powell
believes highlights the
dissatisfaction with drugs
currently on the market.
The strong PSD502 results saw
Plethora’s shares soar from levels
around 135p at float to their
current highs of 225p, but the
strength of its pipeline is such
that analysts at Collins Stewart
recently upped their target price
from 338p to 526p – a massive
180% above where they are now.
by: Susanna Twidale
PLETHORA SOLUTIONS (PLE:AIM) – 225p STOP LOSS 180p
Shares Summary
PLETHORA SOLUTIONS HDG.
share price
APR MAYJUN JUL AUG SEP OCT NOV
100
120
140
160
180
200
220
240
HIGH 227.50 12/12/05
LOW 108.00 7/7/05
Source: Thomson Financial/Datastream
Successful trial results and the
potential to launch in blockbuster
markets bodes well for Plethora
which should secure a licensing
deal for its PE drug in 2006.
BUSINESS:
Phase II urology drug developer
VITAL STATS:
Market value: £50 million
Historic PE: n/a
Prospective PE for 2005: n/a
Prospective PE for 2006: n/a
Sector PE (next 12 months):
15.74
1-month relative strength: 81.6
1-year relative strength: N/A
Yield: n/a
NMS: 3000
Spread: 4.35