A strong week for the market saw the S&P/ASX 200 close up 134.5 points (+2.54%), following the U.S Federal Reserve’s decision to leave interest rates unchanged. All of the big 4 banks finished well in the green, with ANZ Banking Group (ASX:ANZ) moving up an impressive 4.67%. The week also saw mining giants BHP Billiton (ASX:BHP) and Rio Tinto (ASX:RIO) move up in excess of 7%.
In small and medium sized companies, the biggest news for the week came from Australian Biotechnology company Bionomics Limited (ASX:BNO). The companys shares traded 43.4% higher at the end of the week, following the release of Phase II trial results which showed Bionomics Anxiety drug to be highly successful. The trial met its two primary endpoints, and conclusively outperformed the current standard of care (lorazepam). Professor Allan Young, Director of the Centre for Affective Disorders at King’s College London and the Principal Investigator of the study described the result as a “potential paradigm shift for the treatment of anxiety disorders”, going on to add that “BNC210, in contrast to benzodiazepines such as lorazepam, has shown no evidence of sedation or addictive potential”
During the week, Baker Young staff spoke with several companies, including Gooroo Limited in relation to their upcoming IPO. The company has created an I.T recruitment platform and managed to secure a partnership with Microsoft, giving early stage validation of the technology. The company is still in its early stages and will list with an valuation of around $10m.
Baker Young also had a boardroom meeting Bionomics CEO & Managing Director, Deborah Rathjen following the Phase II results earlier mentioned. The discussion centred around the results and the nature in which the trial was conducted, but also branched into the potential avenues the company can take following the result. The drug (BNC210) is likely to be in hot demand following the result of the results, and should yield some fairly lucrative licensing/partnership opportunities with other Biotechnology companies.
The week was rounded out with a conference calls from OBJ Limited (ASX:OBJ), who gave an update on the progress of their business, as well as a call with Pureprofile Limited (ASX:PPL) to discuss the acquisition of ‘cohort’ and subsequent Capital raising.