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Pharmaxis Limited (PXS) said it has signed an agreement to acquire Canadian based private biopharmaceutical company Topigen Pharmaceuticals Inc. The company said the transaction would enhance its respiratory drug development portfolio.

Pharmaxis said it would issue 3.2 million shares on closing of the transaction, with an additional 5 million shares to be issued subject to the achievement of certain preclinical and clinical milestones specified in the purchase agreement.

The company said Topigen’s lead drug candidate, TPI ASM8, is in Phase 2 clinical development for the management of moderate to severe asthma, while a second drug candidate, TPI 1100, is in preclinical development for Chronic Obstructive Pulmonary Disease.

Pharmaxis CEO, Alan Robertson, said the company had sought to expand its product pipeline and utilize its existing clinical development capacity with an additional Phase 2 product.

“The Topigen product, ASM8, is due to report the results of its Phase 2 dosing trial in the first half of this year,” Mr Robertson said.

“It has an attractive clinical profile and there remains a strong medical need for new products in the severe and specialist-treated asthma market.”

He added that Topigen would bring sufficient cash resources to complete the current Phase 2a study and the next clinical milestone.

Pharmaxis expects to close the acquisition within the next sixty days.

As at 1045 AEDT, Phamaxis shares were up 6c to $2.76.

Out of the US, 2010 economic results were heralded in by Alcoa, which reported quarterly earnings this morning. The US-based company, which has a 60-40 joint venture with Australia's Alumina Limited (AWC), called World Alumina and Chemicals (AWAC), reported a loss of US$266 million, following unusual charges of US$275 million.

The company noted however that revenues were up 18% from the previous corresponding quarter and free cash flow was US$761 million, up US$947 million on the prior quarter.

In the previous corresponding period the company reported a loss from continuing operations of US$929 million. The company also highlighted that, not including one-off items, it achieved profitability for the second straight quarter.

The company also said it was ahead of its key financial goals for 2009, including being free cash flow neutral by the end of the year.

“Facing continued headwinds from energy and currency costs, the entire company is committed to continuing those efforts in 2010,” Alcoa president and CEO, Klaus Kleinfeld, said.

In Australia, Alumina is expected to announce its half-year results on 9 February.

At the open Tuesday, Alumina shares were trading down 3.9% at $1.98 each.

Mineral Resources Limited (MIN) announced that Lion Diversified Holdings Berhad has accepted MRL’s share offer for Polaris Metals NL (POL). The company said it has now obtained acceptances totalling 95.89% of Polaris shares. Mineral Resources said as a consequence of achieving an interest in Polaris of greater than 90%, the consideration under its share offer is increased by 0.1c per Polaris share to one MIN share for every 10 Polaris shares held plus 10.1c cash for every one Polaris share held as previously announced. The company added that it does not intend to increase the consideration of the share offer any further.

DMC Mining Limited (DMM) said it has an increased exploration target size at its 80% owned Mayoko Iron Ore Project in the Republic of Congo of 0.9 to 1.3 billion tonnes of dominantly itabirite iron mineralisation. The company said it recently completed reconnaissance geological mapping and rock chip geochemical sampling, which confirmed the occurrence of iron mineralisation at three new targets that were initially identified by a high resolution, airborne magnetic survey completed in 2009. DMC said these targets were not included in the exploration target size previously announced of 0.7 to 1.0 billion tonnes.

Blackthorn Resources Limited (BTR) said it had signed a heads of agreement with Swiss miner Glencore International AG, to develop the Perkoa Zinc Mine Project in West Africa. Under the terms of the preliminary agreement, Glencore said it would provide or procure funding, estimated at US$72 million, to complete the mine. When completed, Blackthrorn said it would hold a 39.9% interest in the mine, with Glencore holding 50.1% and the government holding the remaining 10%.

Cazaly Resources Limited (CAZ) has entered a trading halt. The junior iron ore producer said the request was made pending an announcement on the feasibility study of its 100% owned Parker Range Iron Ore project in Western Australia.

Ramelius Resources Limited (RMS) said it increased its offer for Dioro Exploration NL (DIO) to 2.1 Ramelius shares for each Dioro share and also declared the offer as final. Ramelius said that while the ratio of shares is fixed, the dollar value of the Ramelius shares on offer had increased due to a rise in price. The offered countered that of Avoca Resources Limited (AVO), who recently announced a new offer for Dioro shares at the equivalent of $1.25 per share, containing a cash component of 65c with the balance in AVO shares. Ramelius said the market value of its offer is equivalent to the Avoca bid but believed that receiving Ramelius shares would be more likely to result in the value of shareholders investment growing in the future.

Adelaide Energy Limited (ADE) said it has agreed to acquire three petroleum exploration permits in the Maryborough Basin in Queensland from US company Magellan Petroleum Corporation for $450,000. The company said it considers the area to be prospective for gas in multiple unconventional reservoir types: coal seams, shales and tight sandstones. Adelaide Energy said the permits are the subject of a Farmin Agreement with Blue Energy Limited (BUL), under which Blue Energy may earn a 75% interest in the permits by completing a coal seam gas related work program. The company expects the transaction to be closed this quarter following third party approvals.

Mount Gibson Iron Limited (MGX) said it had recommenced the construction and development of its Extension Hill Direct Ship Ore Project. Construction and development was scheduled to be completed within 15 months at a cost of $80 million the company said, with a commitment from a Chinese miner to buy the ore from Extension Hill. The Aussie miner said a $90 million upgrade to the rail line between Geraldton and Perenjori was expected to be completed by June 2011.

Navitas Limited (NVT) announced the execution of an educational affiliation agreement with Western Kentucky University for the establishment of a university pathway college at the university’s main campus. The company said the move into the US was a significant step in the global rollout of its business and academic models.

CEO, Rod Jones, said the company was committed to establishing a footprint in one of the world’s largest education markets and anticipates hat the new college would mature to operational break even within 18 months.

“By accessing the universities’ teaching and other facilities, as well as accommodation and administration amenities, we are able to minimise capital costs and maximise existing services for the benefit of our students,” Mr Jones said.

Navitas said the new college is due to open in September 2010.

At the close of trade Monday, Navitas shares were trading at $4.14.

RBS – Round Up – 110110

US stocks traded close to the gain line Monday, as investors remained uncommitted ahead of the American reporting season which officially kicked off with the traditional lead-off from Alcoa after the close.

The Dow Jones rose 45.8 points, or 0.43%, to 10,663.44, the S&P 500 added 2.03 points, or 0.18%, to 1,147.01 and the tech-heavy NASDAQ lost 4.76 points, or 0.21%, to 2,312.41.

Among the banks JPMorgan, which reports earnings later this week, dipped 0.1%.

Citigroup climbed 1.7%, while Bank of America put on 1.5%.

Among the tech stocks, Microsoft lost 1.4%. Google and HP eased 0.2% and 0.3% lower.

Among the autos Ford added 2.5% to a 52-week high as delisted rival GM’s CEO said that company would turn a profit this year.

The cold weather helped oil stocks, with Exxon Mobil climbing 0.4%. Chevron added 1.6%.

NYMEX light crude oil for February delivery fell US47c to settle at US$82.28 a barrel.

COMEX gold for February delivery rose US$13.20 to settle at $1,151.40 an ounce.

European Markets

European stocks were virtually unchanged Monday despite a strong start to the day which saw the UK FTSE trading at fresh 15-month highs. Bank stocks retreated ahead of the US reporting season, while other stocks were encouraged by Chinese export data that saw exports in December jump a massive 17.7% from the previous year.

The benchmark UK FTSE 100 added just 3.83, or 0.07% to 5,538.07. The French CAC40 slipped 2.05 points, or 0.05% to 4,043.09, while Germany’s DAX eked out a 2.89 gain, or 0.05% to 6,040.50.

UK banks Barclays and HSBC dipped 1.1% and 1.4% respectively.

On the continent, BNP Paribas shed 1.4% and Deutsche Bank retreated 1.2%.

UBS lost 1% as its CEO warned about the net outflow of funds from wealthy investors.

Miners lost ground despite the majority of base metals prices rising on the LME.

Aussie peers BHP Billiton and Rio Tinto eased 0.5% and 0.4% lower respectively. Xstrata dropped 1.8%.

Europe’s second largest phone maker Telefonica shed 3.2% after Bolivia, where the company does a lot of business, devalued its currency.

In brewery news, Dutch company Heineken said it would splash out US$7 billion on Mexican beer maker FEMSA, sending the former’s stock price 3.3% higher.

Energy stocks were buoyed by a broker upgrade to BP from Citigroup and the strong manufacturing data out of China. BP climbed 2.2%, while Royal Dutch Shell added 0.9%.

Japanese Markets

The Nikkei was closed for the Coming of Age Day Holiday.

Hong Kong Markets

Hong Kong stocks gained ground as China’s exports increased for the first time since October 2008. Brokerages led the rally, while container and shipping related stocks were not far behind.

According to the customs bureau China’s imports increased 55.9%, while exports as previously mentioned, climbed 17.7%.

The Hang Seng rose 114.77, or 0.51% to 22,411.52.

Brokerages were boosted by the government’s decision to approve short selling and stock the country's first index futures. China Everbright and Tanrich Financial Holdings spiked 10% and 15% respectively.

Container-terminal operator Cosco Pacific and ports investor China Merchants rallied 6.9% and 5.3%.

Orient Overseas (International) and China Shipping Development Co surged 11% and 10%.

Aluminium Corp of China jumped 7.2% following the second increase to alumina prices in a week.

Zijn Mining closed 2.2% dearer after receiving approval from the Foreign Investment Review Board of Australia for its takeover offer for Indophil Resources.

Falls among property stocks tempered gains. Soho China and Greentown China shed 2.1% and 4.5%.

Bank of China weakened 0.9% as reports surfaced it will raise capital through either a share sale of rights offer.

The Australian market closed 0.8% higher Monday on optimism of an economic recovery. Commodity stocks led gains, while the influential financial sector was also higher.  

In economic news, according to the ANZ’s monthly survey job advertisements increased 6% on November to their highest level since May 2007. Advertisements rose 5.2% the previous month.
At the end of the day, the All Ords was up 39.0 to 4,981.2, while the ASX/200 gained 38.6 to 4,950.7. About 2.1 billion shares worth around $3.5 billion had changed hands.

Investors in the Materials and Resources sector focused on positive notes made by brokers on their European and Asian peers, helping the sector up 2.1%.

The gains came despite widespread declines in base metal prices in London on Friday.

Australia’s largest company, BHP Billiton, climbed 1.9% to $44.47, while Rio Tinto put on 99c to $80.00. It is the first time Rio shares had reached the $80 mark since September 2008.

Fortescue bounced back from a bout of profit-taking at the end of last week to lead the miners higher, up 23c, or 4.5% to $5.29. The iron-ore producer has shown volatility this year, with shares up around 20% since 1 January.

Gold miners were also strong with Lihir surging 10c, or 3% to $3.46. Larger rival Newcrest tacked on 62c, or 1.7% to $36.82.

Steelmaker Onesteel and metals recycler Sims Metal rallied 4.6% and 4% to $3.64 and $25.40.

Alumina was also strongly favoured among investors with the company spiking 13c, or 6.7% to $2.06. Its shares are up over 20% since Credit Suisse upgraded its rating on the stock on 14 December setting a price target of $2.00 per share.

The Banks and Financials sector advanced 0.5% as the big four banks managed to finish above the line. NAB was the best performer, up 35c, or 1.3% to $27.25.
 
Insurers were mixed with QBE and Suncorp-Metway up 21c and 9c to $24.98 and 8.86 respectively.

The Property Trusts sector slid 0.2% as a 6c loss to $12.65 from Westfield was offset by gains elsewhere.

Energy stocks added 0.6%, with Woodside and Santos gaining 1.2% and 0.8% to $49.28 and $14.40.

Riversdale Mining was popular throughout the day, up 24c, or 3.1% to $8.00. In late trade the company announced that the Mozambique Government had granted environmental approval for the Benga Coal project.

Extract Resources rallied 51c, or 6.2% to $8.80 after the uranium explorer released positive results from its flagship Rossing South project.

Coal & Allied put on 4.5% to $89.18.

The Industrials sector rose 0.7% following strong gains from the major players. Leighton and Brambles rose $1.49 and 14c to $41.27 and $7.18 respectively
 
A major mover in the sector was Auckland International Airport which slumped 2.4% to $1.61 after announcing it would pay $132 million for a stake in two North Queensland airports.

Consumer Staples edged 0.1% higher on a mixed day for the sector. Wesfarmers advanced 9c to $31.55, while Woolworths dipped 9c to $28.00.

Beverage stocks countered one another with Coca-Cola Amatil shedding 12c to $11.17 and Foster’s putting on 6c to $5.45.

A broad decline in the retailers could not halt the Consumer Discretionary sector from adding 0.1%.

JB Hi-Fi lost 40c, or 1.8% to $21.28 and David Jones fell 10c, or 1.9% to $5.07.

Gamers Aristocrat and Crown rose 1.2% and 1.4%.

Among the media stocks Ten led the way, up 3.3% to $1.725.

Telstra lost 0.9% to $3.35,with the Telecommunications sector down by the same amount.

Around the region, the Nikkei 225 advanced 116.7 to 10,798.3, while the Straits Times Index gained 17.0 to 2,939.8. Meanwhile, the NZSE50 lost 6.5 to 3,303.7. The Hang Seng put on 304.6 to 22,601.4.

Spot gold was trading at US$1,153.00 per ounce, and the Aussie was buying US$0.9307.

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Ramsay enters French health care market
Ramsay Health Care has made a foray into the French healthcare sector, taking a 57% stake in private hospital operator Groupe Proclif SAS for $142m, the group said Monday. Ramsay said it expected the purchase to deliver a small accretion to core EPS by FY12.

At the end of the day, Ramsay Healthcare shares were up 13c to $11.20.

AIA agrees to purchase North QLD Airports
Auckland International Airport has agreed to purchase a 24.55% stake in North Queensland Airports for $132.8 million from Westpac Banking Corporation. The company said the acquisition of the Cairns and Mackay airports operator was part of its strategy to grow beyond its core business in Auckland.

By the finish, Auckland Airport shares were down 4c to $1.61, while Westpac shares were up 3c to $25.18.

CBH confirms takeover offer
CBH Resources confirmed media speculation that it had received a takeover proposal from Nyrstar NV last month. The company said the conditional, confidential and incomplete proposal valued each CBH share at 13.5c.

At the finish, CBH shares were down 0.5c to 14c.

Bauxite Resources inks deal with Yankuang
Bauxite Resources announced that it has signed a Heads of Agreement with Yankuang Corporation for the joint development and ownership of an alumina refinery in the south west of Western Australia. Under the terms of the agreement, Bauxite said Yankuang would subscribe for an equity stake in BAU and be able to explore and exploit the Australian company’s tenements in the Darling Range.

By the close, Bauxite Resources shares were down 4c to 99.5c.

Santos extends gas options deadline
Santos said that GLNG, its natural gas joint venture with Malaysian giant Petronas, had extended the deadline for agreement of the sale of an extra 1 million tonnes per annum of gas from the project by Petronas. GLNG said the extension was due to discussions with a number of Asian buyers about the sales from the project.

By the end of the day, Santos shares were up 11c to $14.40.

Mirrabooka 1H profit down 24%
Mirrabooka Investments reported a 24% reduction in net profit for the six months to 31 December 2009 compared to the previous corresponding period. The company said its profit totalled $5.6 million, while operating profit dropped 27% to $4 million.

At the final whistle, Mirrabooka shares were up 4c at $2.19.

Nomad downgrades guidance
Nomad Building Solutions shares slumped Monday morning after the modular building manufacturer downgraded its FY10 guidance from a profit of $10-$12m to a $2m loss. The company said it had been negatively impacted by a failure to secure the anticipated level of work, additional costs and continuing pressure on margins.

At the finish, Nomad shares were down 33.5c to 37c.

Local shares jumped out of the block to start the week up 0.7% by lunch Monday as the miners showed strength, supported by modest gains from the financial stocks. The advance consolidated gains from the first week of the year as the index inches towards the psychological 5,000-point barrier.

At midday, the All Ords was up 32.7 to 4,974.9, while the ASX/200 gained 34.1 to 4,946.2. About 1 billion shares worth around $1.3 billion had changed hands.

Investors in the Materials and Resources sector focused on positive notes made by brokers on their European and Asian peers, helping the sector up 1.8% by lunch.

The gains came despite a widespread declines in base metal prices in London on Friday.

Australia’s largest company, BHP Billiton, climbed 1.5% to $44.26, while Rio Tinto put on 79c, or 1% to $79.80. Rio shares have not been worth more than $80 each since September 2008.

Fortescue bounced back from a bout of profit-taking at the end of last week to lead the miners higher, up 29c, or 5.7% to $5.35. The iron-ore producer has shown volatility this year, with shares with shares up 20% since 1 January.

Gold miners were also strong with Lihir surging 12c, or 3.6% to $3.48. Larger rival Newcrest tacked on 86c, or 2.4% to $37.06.

Steelmakers Bluescope and Onesteel paced each other, with gains of 2.2% and 2.6%.

Alumina was also strongly favoured among investors with the company spiking 8c, or 4.1% to $2.01. Its shares are up 20% since Credit Suisse upgrade their rating on stock on 14 December setting a price target of $2.00 per share.

The Banks and Financials sector climbed 0.5% as the big four banks put on gains of less than 0.9%.

Investment group Macquarie was unchanged at $48.90.

Insurers were mixed with QBE and Suncorp-Metway both up 0.8%, while AXA Asia Pacific and IAG retreated 0.6% each.

The Property Trusts sector was flat, despite sector major Westfield easing 7c, or 0.6% to $12.64.

Energy stocks added 0.4%, with Santos, Origin, Oil Search and Woodside Petroleum all adding 0.3% to Friday’s close.

Riversdale Mining was popular again, up 32c, or 4.1% to $8.08.

Aquila Resources added 9c, or 0.8% to $11.14, though this was countered by an 87c, or 2.9% decline in the price of WorleyParsons shares.

The Industrials sector rose 0.2%, with a broad mix of gainers and losers.

Brambles was flat, while Leightons eked out a 16c, or 0.4% gain to $39.94.

Toll Holdings climbed 0.8% to $9.07.

A major mover in the sector was Auckland International Airport which slumped 3.6% to $1.59 after announcing it would pay $132 million for a stake in two North Queensland airports.

Consumer Staples edged 0.5% higher on the back of a 43c, or 1.4% gain from Wesfarmers shares.

Woolworths dipped 14c to $27.95.

Among beverage stocks Coca-Cola Amatil shed 1.5%, while Fosters rallied the same amount.

A broad decline in the retailers, meanwhile, saw the Consumer Discretionary sector ease 0.1% lower.

JB Hi-Fi lost 36c, or 1.7% to $21.32. David Jones fell 10c, or 1.9% to $5.07.

Aristocrat, Crown and Tabcorp were all trading within 0.5% of the gain line.

Among the media stocks Ten led the way, up 2.1%.

Telstra lost 1.2% to $3.34 as the Telecommunications sector shed 1.3%.

Around the region, the Nikkei 225 advanced 116.7 to 10,798.3, while the Straits Times Index gained 9.1 to 2,931.9. Meanwhile, the NZSE50 lost 11.8 to 3,298.4.

Spot gold was trading at US$1,155.10 per ounce, and the Aussie was buying US$0.9301.

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Ramsay enters French health care market
Ramsay Health Care has made a foray into the French healthcare sector, taking a 57% stake in private hospital operator Groupe Proclif SAS for $142m, the group said Monday. Ramsay said it expected the purchase to deliver a small accretion to core EPS by FY12.

At noon, Ramsay Healthcare shares were up 9c to $11.16.

AIA agrees to purchase North QLD Airports
Auckland International Airport has agreed to purchase a 24.55% stake in North Queensland Airports for $132.8 million from Westpac Banking Corporation. The company said the acquisition of the Cairns and Mackay airports operator was part of its strategy to grow beyond its core business in Auckland.

At lunch, Auckland Airport shares were down 6c to $1.59, while Westpac shares were up 6c to $25.21.

CBH confirms takeover offer
CBH Resources confirmed media speculation that it had received a takeover proposal from Nyrstar NV last month. The company said the conditional, confidential and incomplete proposal valued each CBH share at 13.5c.

At midday, CBH shares were down 1c to 13.5c.

Bauxite Resources inks deal with Yankuang
Bauxite Resources announced that it has signed a Heads of Agreement with Yankuang Corporation for the joint development and ownership of an alumina refinery in the south west of Western Australia. Under the terms of the agreement, Bauxite said Yankuang would subscribe for an equity stake in BAU and be able to explore and exploit the Australian company’s tenements in the Darling Range.

At lunchtime, Bauxite Resources shares were down 2.5c to $1.01.

Santos extends gas options deadline
Santos said that GLNG, its natural gas joint venture with Malaysian giant Petronas, had extended the deadline for agreement of the sale of an extra 1 million tonnes per annum of gas from the project by Petronas. GLNG said the extension was due to discussions with a number of Asian buyers about the sales from the project.

At noon, Santos shares were up 5c to $14.34.

Mirrabooka 1H profit down 24%
Mirrabooka Investments reported a 24% reduction in net profit for the six months to 31 December 2009 compared to the previous corresponding period. The company said its profit totalled $5.6 million, while operating profit dropped 27% to $4 million.

At lunch, Mirrabooka shares were unchanged at $2.15.

Nomad downgrades guidance
Nomad Building Solutions shares slumped Monday morning after the modular building manufacturer downgraded its FY10 guidance from a profit of $10-$12m to a $2m loss. The company said it had been negatively impacted by a failure to secure the anticipated level of work, additional costs and continuing pressure on margins.

At midday, Nomad shares were down 31c to 39.5c.

Mirrabooka Investments Limited (MIR) reported a 24% reduction in net profit for the six months to 31 December 2009 compared to the previous corresponding period. The company said its profit totaled $5.6 million, while operating profit dropped 27% to $4 million.

Mirrabooka declared an interim dividend of 3.5c per share fully franked, unchanged from the previous year.

”The general decline in dividends impacted the dividend and distribution income received by Mirrabooka for the six month period,” the company said.

Mirrabooka said its portfolio return was 30.2% over the six month period, which was ahead of the 27.7% return experienced by the combined small to mid cap sector over the period.

The company said it purchased several attractively priced issues, most notably Hastings Diversified Utilities Fund and Healthscope, while the company also added Ardent Leisure Group, CFS Retail Property Trust, Sigma Pharmaceuticals and Customers Limited to its portfolio.

“As a result of these purchases cash represented only 4% of the total portfolio at 31 December down from 13% of the portfolio at the end of the last financial year,” the company said.

“Major sales from the portfolio were ABB Grain, which was under a takeover offer, Sonic Healthcare, Computershare and, as a result of the exercise of call options, Toll Holdings and James Hardie Industries.”

Mirrabooka said its was close to fully invested at a time when the market has recovered to a point where valuation levels reflect fair value and look neither cheap nor expensive.

”The portfolio is well positioned and we will be looking to the upcoming company reporting season to verify that the economic recovery is being reflected in company earnings,” the company said.

As at 1144 AEDT, Mirrabooka shares were unchanged at $2.15.

CBH Resources Limited (CBH) confirmed media speculation that it had received a takeover proposal from Nyrstar NV last month. The company said the conditional, confidential and incomplete proposal valued each CBH share at 13.5c.

CBH said the acquisition is conditional upon Nyrstar successfully acquiring through a scheme of arrangement CBH’s convertible notes at no more than $750 per note, with consideration in either cash, Nyrstar shares or Nyrstar convertible notes, among other customary conditions.

The company said it has since appointed Clayton Utz and RBC Capital Markets to advise it in relation to the proposal.

In relation to media speculation regarding Perilya Limited (PEM), CBH said it has not been approached by the diversified miner in relation to any proposal that could lead to a change of control transaction.

As at 1120 AEDT, CBH shares were down 0.5c to 14c, while Perilya shares were up 1c to 69c.