Circa is now 20% of NSKOG

I communicated with Norske Skog Investor Relations today. The cost of Norske Skog’s stake of Circa is around 60 mil NOK. NSKOG owns 31.65m Circa shares. Circa IPO values that stake today at around 600 mil NOK. That is about 6.4 NOK per share, up from 0,64 NOK per share. I hope that the brokers will bring this news to the investors which should lead to revaluation of NSKOG share price. We are long NSKOG

Pareto reconfirmed their Price target for Xbrane at 157 NOK per share for this year and 316 NOK for next (if commercialization is successful). It is one of our favorite stocks. They are in biosimilar drug area. There are two advantages of Biosimilar drugs – simplified FDA approval (only two stages takes about 6 months) and high 95% FDA approval success rate. In substance the company must only demonstrate, that the composition is similar to the original drug and that it has a similar effects. The study should be completed by June 21. The company partnered with Bausch and Lomb and Stada to distribute their product. The main product is biosimilar to Lucentis (Roche) for eye diseases. We are long Xbrane.

Trading idea: look at companies, that went down in their recent IPO/SPOs. Examples of those could be 247 Office(247), Arctic Bioscience (ABS), Skandia GreenPower (SKAND) etc


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