Consegna Group on a rapid growth path

Consegna Group (ASX: CGP) has witnessed strong growth since November 2010 with a 225% increase in its market capitalisation and a 3,331% increase in the value of its net assets.

The arrival of new substantial shareholder Switzerland-based Balam Group, which now holds a 14.33% stake in Consegna, brought with it a flurry of interest from all corners of the globe, including the U.S., Asia and Europe.   

In extremely difficult global market conditions, Consegna was able to raise close to $2 million in working capital through 2011.

Earlier this month Consegna received a price and volume query from the ASX over a 57% share price jump to a high of A$0.052 on 5 January, a day when the broader Australian market was down 1%.

The company made mention of the fact that its products had received “significant print and television media attention over the previous weeks”.

Consegna’s share price has increased 33% over the past year, while its market capitalisation has more than tripled to A$24.3 million.

The value of the company’s net assets has also grown significantly to $15.25 million in January 2012, up from $0.44 million in November 2010.

In late November 2011, Consegna announced it was ready to start negotiating licences for the commercialisation of its BreatheAssist device.

BreatheAssist is a multi-functional nasal dilation technology that enhanced nasal airflow by 37% in a clinical study.

Importantly, there are multiple licensing opportunities for BreatheAssist, including sport, medication delivery, snoring cessation, aiding sleep apnoea and the filtration of pollen and other airborne pollutants.

Consegna today reaffirmed its plan for 2012 is to seek international licensing deals specifically for the BreatheAssist technology.

The company is aiming to complete its first transaction by the June quarter of this year.

Further improved production samples of one of the variants of BreatheAssist will be available in February this year, which is expected to assist in maximising licensing negotiations.

Besides its BreathAssist technology, Consegna has also developed the Vibrovein and Linguet technologies.

With Vibrovein, a vibrating device that attaches to any syringe to substantially reduce penetration resistance, Consegna is targeting the $120 billion injectable drug market.

Linguet is a tablet or lozenge formulation technology that releases an active drug ingredient in the mouth and which facilitates absorption through the oral mucosa.

The oral modified release drug delivery market was valued at $49 billion in 2009 and is estimated to double by 2016.

In December 2011, Consegna completed the acquisition of cancer treatment developer Aspen Medisys which gave the company access to Aspen’s nanoparticle magnetic thermotherapy technology platform for the treatment of solid tumours.

Consegna’s forward plan for Aspen’s technology is to begin efficacy studies in companion animals in the March quarter 2012.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/24372/consegna-group-on-a-rapid-growth-path--24372.html