Business Description:
Pharmaxis Limited (PXS) is a specialty pharmaceutical company involved in the research, development and commercialisation of new therapies for undertreated respiratory diseases. Its development pipeline of products includes Aridol for the management of asthma, Bronchitol for cystic fibrosis, bronchiectasis and chronic obstructive pulmonary disease (COPD), PXS25 for the treatment of lung fibrosis and ASM8 for asthma.

Strategy Analysis:
PXS intends to build a fully integrated specialist pharmaceutical company in human therapeutic products for chronic respiratory and autoimmune diseases in multiple jurisdictions. The product pipeline comprises Aridol, a lung function test for asthmatics, and Bronchitol for cystic fibrosis, bronchiectasis and chronic bronchitis. Both of these products are in final preparation stage for launches (Bronchitol in EU and Aridol in USA). The Autoimmune pipeline is in early stages of development and includes PXS25 and PXS2030 for multiple sclerosis and PXS2076 for rheumatoid arthritis. PXS' strategy is to fund respiratory drug development to market rather than partner with a major pharmaceutical player. Pharmaxis reported a net loss of $45.76m for the year ended 30 June 2011. Revenues from ordinary activities were $4.46m, down 17% from last year. Basic and Diluted EPS was (20.2) cents compared to (21.0) cents last year. The net operating cash outflow was $37.37m compared to an outflow of $39.68m in the pcp. No dividend was declared.