Rivkin on DJS, PWR, CPU and QBE, page-12

potential US deal for the smartcard RR wouildn't t http://www.theage.com.au/articles/2002/05/28/1022569770274.html
Cellestis news has investors' blood pumping
By Fleur Leyden
May 29 2002





After trundling through a rather sluggish patch of its 12-month trading range - from 40 cents to $3.37 - Cellestis shares saw a bit of excitement yesterday.

The biotech company announced it had entered an agreement to market and distribute its QuantiFERON products in Japan, and the news boosted the scrip 12 cents, or more than 7 per cent, to $1.83.

The deal, with Tokyo company Nichirei, includes a second-generation QuantiFERON-TB product - a spin-off of the technology that Cellestis brought to the market early last year.

QuantiFERON-TB, which was invented by the CSIRO and developed by CSL, uses blood samples to measure cellular immune responses. It can be used to test patients for tuberculosis.

Although it may seem that TB became a disease of the past with the advent of antibiotics in the 1940s, World Health Organisation figures show that about eight million people a year contract the ailment, which is spread through coughs and sneezes.


So it's no wonder Cellestis shares were jumping - in Japan more than 20 million tuberculosis tests are conducted each year, making it a major market for the company.

Enthusiasm was tempered yesterday for others in the health and biotech sector. Mayne shares lost five cents to $4.12 while Healthscope dipped one cent to $2.44 after an announcement that it had acquired two hospitals in outer Brisbane, and would stay on the expansion trail. On the upside, CSL rose 24 cents to $37.14, Ramsay Health firmed one cent to $4.31 and bionic ear maker Cochlear put on $1.02 to $36.67.

Analysts said a United States holiday on Monday night and the absence of Wall Street trade caused the local market to drift.

"It was a very lacklustre day with little direction and few sector highlights," said Austock dealer Marshall Biggins. "Broadly speaking, the major banks have been quite strong and CBA has been a bit of an underperformer, so it is playing a bit of catch-up with the other banks."

CBA shares closed 43 cents higher at $33.07. The bank, on a roadshow this week, yesterday outlined a five-year plan to achieve 15 to 25 per cent total shareholder returns through productivity improvements. NAB gained 10 cents to $36.19, Westpac climbed 11 cents $16.44 and ANZ lost 12 cents to $19.02.

Traders said some gold stocks, such as Newcrest Mining, remained in demand in the aftermath of Monday's bid from Placer Dome for AurionGold, and as the US dollar continued to edge lower. But there was evidence yesterday of profit-taking in the sector.

In Sydney, the spot price of gold was 50 US cents weaker at $320.75 an ounce.

Newcrest rose 24 cents to $7.90 as it continued to be counted as the next cab off the takeover rank. AurionGold gained seven cents to $4.60 but Lihir Gold, another potential takeover target, dropped one cent to $1.57 and Sons of Gwalia shed 12 cents to $6.63.

More than 20 million Telstra shares changed hands, with the price unchanged at $4.82.

ERG volumes were up on speculation of a domestic contract and potential US deal for the smartcard company. The shares rose two cents to 32.5 cents, with almost 24 million shares worth more than $7 million changing hands.

Toll Holdings rose 38 cents to $34.91 after the transport company's managing director said results for the current financial year would be strong. Patrick Corporation lost one cent to $16.85 and Qantas lost two cents to $4.60.

In the retail realm, Rebel Sport gained eight cents to $2.11, following its profit results on Monday. Harvey Norman fell two cents to $3 while Coles Myer rose eight cents to $6.53.

Resource sector gains were made by BHP Billiton, which added nine cents to $11.16. Oil producer Woodside gained 17 cents to $14.14 after a Salomon Smith Barney analyst re-rated the company a "buy" from "outperform". Rio Tinto shares firmed 10 cents to $35.80.

News Corp lost one cent to $13.42. PBL lost three cents to $9.22 and Fairfax fell two cents to $3.53. Ten Network rose one cent to $2.32 after the station won rights to new content from Sex and the City producer Paramount International Television.