"Solagran (SLA) $1.44 ALL this talk of alcohol allows for a...

"Solagran (SLA) $1.44

ALL this talk of alcohol allows for a smooth segue into the esoteric sector of using natural substances to treat a range of ailments.

Solagran has patented the practice as Bioeffective and it's based on extracting active agents from greenery such as pine needles and fir trees. "This is the greenest industry imaginable: taking the waste from forest products and turning it into pharmaceuticals," says Solagran chief Denis Kilroy.

Solagran's biggest hope is a treatment for liver disease such as hepatitis. Aptly, its initial target market is Russia, where folk are partial not so much to premium beer as Uncle Yuri's industrial-strength vodka.

The full Solagran story is a complex and intriguing one of Russian scientific endeavour over 70 years, involving the Germans' 900-day siege of Leningrad in World War II.

During the blockade, many starving townsfolk were kept alive with infusions derived from pine needles, which contain vitamins and antibiotic properties. So in a sense Leningrad served as the perfect clinical trial with hordes of captive but willing citizenry.

Solagran has since commercialised a variant, Bioeffective B, for use as an oil in saunas which promotes sweating. The elixir was first designed for the Russian Olympics team, but we're assured it's not the sort of elixir which would trouble anti-doping authorities.

Solagran's real potential lies with Ropren, a fully-fledged pharmaceutical drug to tackle liver disorders and - possibly - Alzheimer's disease. Approval from Russian drug authorities, who are no soft touch, is "imminent".

According to Solagran chief Denis Kilroy, there are 10 million Russians with mainly alcohol-related liver diseases and 300 million globally.

Solagran back-door listed in 2003 using the shell of a failed miner turned failed online travel company. Proving that the biotech sector indeed is the new black, Solagran shares have soared from 14c last June to as high as 1.55.

Despite being low-key to the point of shyness, Solagran maintains strong investor support from a rump of loyal individuals (who are sitting on a poultice).

Solagran has a licensing deal with the listed BioProspect (BPO, 5.4c), which is commercialising the animal health applications of Solagran's work. Solagran is entitled to 30 per cent of profits and an eventual 25 per cent BioProspect stake.

Solagran boasts a market cap of $160 million and, factor in heavily in-the-money options, this expands to $300 million.

Kilroy says he has a "pretty good idea of (Solagran's) intrinsic value" and - surprise - it's worth more than $300 million. "We have only commercialised three substances out of 17 and have the ability to make many more."

Solagran shares look dear, but not if the company really is on the cusp of commercialising a drug with multiple applications.

We'll assign a SPECULATIVE BUY. Solagran's already making decent revenue from its ancillary products, and yesterday launched an antioxidant medicine which - in Kilroy's pert summation - "removes crap out of your body".

We also rate Biosignal a SPECULATIVE BUY, but human health is more lucrative than animal welfare.

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