AVE

About AVE

Avecho Biotechnology Limited (AVE) develops and commercialises innovative Human and Animal Health products using its drug delivery system called TPM. TPM is derived from Vitamin E using unique, proprietary and patented processes and is proven to enhance the solubility and oral, dermal and transdermal absorption of drugs and nutrients.

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What does Avecho Biotechnology Limited (AVE) do?

Health products for humans and animals. But mostly humans. 

Avecho Biotechnology Limited is a Melbourne-based biotechnology company. The majority of its products are in development, but the basis of them all is its proprietary TPM (Tocopherol Phosphate Mixture) drug delivery system. TPM is a derivative of Vitamin E and “is proven to enhance the solubility and oral, dermal and transdermal absorption of drugs and nutrients”.

Avecho’s current priority for the human health market is to finalise the development of its Cannabidiol (CBD) soft-gel product, and the supporting Chemistry, Manufacturing and Control (CMC) work required for approval by the Therapeutic Goods Administration (TGA) or U.S. Food and Drug Administration (FDA). Another focus is developing products that enhance livestock feeding efficiency and health.

In October 2021, Avecho announced a collaboration with the Lambert Initiative, a long-term research program at the University of Sydney exploring the potential of cannabis in medications.

How does Avecho Technology make money?

Avecho operates in three business segments: Production, Human Health and a segment called All Other.

The Production segment sees revenue primarily from the manufacturing and sale of TPM and another TPM based product, Vital ET. Sales are made at a fixed fee per kilogram to a specialty chemical company, Ashland, for use in the global personal care industry.

As the majority of Avecho’s products are still in development, the company does not earn revenue from the Human Health and All Other segments at this time.

Is Avecho Biotechnology a profitable company?

No, the company is not profitable at this time. 

Since FY2012, the company has only recorded net losses, with FY2019’s positive income of A$849.96k being the exception. In FY2020 and FY2021, Avecho recorded net losses of A$2.63m and A$3.42m, respectively.

Avecho has continued to operate by issuing more shares and options. In February 2021, the company issued A$4.765m worth of stock at A$0.022 per share to “sophisticated investors.” It also issued 115m listed options to the same investors as well as 7.5m more listed options to the brokers.

As of April 2022, the company holds A$3.265m of cash on its books.

Is AVE stock a buy?

On 1 March 2022, the company announced the commencement of patient dosing to examine if its topically applied CBD can relieve the symptoms of osteoarthritis. 

By the end of the month, the company announced positive results with the study demonstrating “significant improvements in hand pain, hand functionality, grip strength, finger stiffness and anxiety”.

Consequently, the AVE stock price skyrocketed almost 65% from A$0.013 to A$0.02 but by the end of April had dropped off 15% to A$0.017.

As the company has a history of poor earnings, some investors would argue AVE stock makes a good speculative short-term trade but not a long-term investment.

Does AVE stock pay dividends?

Avecho Biotechnology paid dividends back in FY2009 and FY2010 but has not since then. The company has not made any announcements to do so for this financial year or the future.

Who owns AVE stock?

Holding 67.2% of the total float, the general public owns the majority of AVE stock. Individual insiders hold 21.9%.

AVE stock’s biggest owners include Mark Kerr (8.52%), Ross Copeland (5.04%), Melbourne Securities Corporation Ltd (3.23%), Paradyce Pty. Ltd (2.1%), Servbond Pty Ltd (1.31%), ACK Pty Ltd (1.12%), Wayne Kent (1.09%), Tony Amato (1.06%) and Churchcourt Pty Limited (1.04%).

Individual insiders with the most significant holdings include Chief Operating Officer Roksan Libanaki (0.6%), Chief Executive Officer Paul Gavin (0.59%), Chairman Gregory Collier (0.11%) and Non-Executive Director Ross Murdoch (0.091%).

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