Prometic Life Sciences Inc. (PLI.TO)

Biotechnology sector is one that he does embrace. As a group it is going higher. This one has clearly broken out and has hit a new 52-week high today. This does go higher. As a group, they are risky. He would recommend buying a basket rather than an individual stock.

Manufacturing company with a bonus of having a drug called PBI4050, which supposedly works better than Intermune, and works even better in combination with the Intermune product. Have proprietary filtering technologies used for large-scale purification of drugs. They use their technology to extract plasma from blood. There are 3 proteins that they are extracting from the plasma including plasminogen, IBIG and AANT. Market cap of just under $1 billion.

He originally bought this for their plasma business where they take plasma out of blood and sell it. This is a huge business that could grow over time. This company is sort of a lottery ticket. They are working some of their drugs through different stages of trials right now. If they can get one of those, it would be a game changer. Their plasma business will be a significantly growing business over the years and provides cash flow for the company.

Tends to be very volatile in the short term. It runs way up, consolidates, and then pulls back a bit and then runs back up again. Have a lot in the pipeline of orphan drugs. Their main business is manufacturing a plasma that comes from blood, which is used in a lot of different pharmaceuticals’ products. As some of those pharmaceuticals get approved and through the FDA channels, the volume of plasma they sell is going to go up. Their “lottery ticket” side of the business are orphan drugs that are going through different phases right now through the approval stage. If you don’t own, watch for a bit of a pull back, which always tends to happen. When you get in, hold for a 3 or 5 year timeframe and you will do really well.

Have an interesting drug PBI450. They basically do proprietary filtering. Could climb 80% in the next 12 months.

Thinks there is a lot of growth ahead for this company. Their basic business is basically separating proteins and plasmas out of the blood. Looking back at the history, this company probably should have been bankrupt, but it was kept alive because their technology is so good and is embedded in a lot of companies that are in trials right now to have their drugs approved. The upside lottery ticket is that they also have some orphan drugs that they are going to be going into clinical trials for themselves. If one of those was successful, it could do fantastic things to the stock.

Biotech tends to do well in the summertime from August through until October. There is another push at the end of the year from about October into February. Seasonality for this in particular is a bit different from the biotech sector. It actually enters a period of seasonal weakness during the summer. Seasonal strength is really from the end of December through to February. Wouldn’t be pursuing this, particularly seeing how stretched it has become.

(Market Call Minute.) Very interesting company. Their filtration technology is getting a lot of attention. Have 2 orphan drugs proceeding along the way. Gaining cash from their partners and looks pretty good right now.

Up 30% year to date. Believes there is still a lot of upside left. Feels there is good opportunity for them, particularly in the 2^nd half of 2014 when you should see a lot of things start to happen and particularly 2015 when you actually see production potentially occurring in China.

Likes the momentum it has. Technology is quite interesting with great potential on some of their products. Early results are very good but if anything goes wrong, a lot of expectations built into the stock will be disappointed. An investor will have to have patience and a tolerance for risk and you’ll have to not look at it for 1 or 2 years.

The largest holding in his personal account. Make beads that basically can extract bad things of blood as well as extracting proteins out of plasma. Have announced a couple of orphan drugs that they will be targeting. Still lots more opportunity, particularly in 2014-2015.

Have filters to extract extremely high proteins and components from plasma. Have a new drug PB1450 that is going into clinical trials in September and seems to do a really good job with exotic diseases. Expected to have decent earnings again in 2014.

Spent $460 million on technology that removes pathogens from blood. Recently got some money from a Chinese company that allows them to build out their Laval plant which will allow them to do 150,000 L a year, about $150 million capacity. P/E ratio of 35. Cheap.