(AZM)                               www.alizyme.co.uk

The discovery, development and commercialisation of pharmaceutical products for the treatment of obesity, diseases related to obesity and disorders of the gastrointestinal tract

Why we bought the share (the first time)

It has made significant progress (Sunday Telegraph 16 May) since
flotation in 1996 and its first product went into clinical trials
earlier this year. Although small it has a broad base covering
obesity, bowel disease and the side effects of cancer treatments.
It also has a drug delivery system which could be 'an important
revenue generator'. Nomura has a 12-month price target of 110p a
share. The share has been tipped at 40p by the Sunday Telegraph

Why we bought the share (the second time)

Although a victim of their own success after rising to over £2
and then falling back through our stop loss to £1.30 for no known
reason these shares are still a good medium to long term buy at
their current price. The original reasons for investment still
hold true and are even greater now as they are now preparing for
clinical trials (on real people) for their Irritable Bowel
Syndrome treatment.

The potential market for this drug is over $3Bn and they are now at
an advanced stage of the products development. Other drugs are
also in various states of development and this should ensure a
steady news flow throughout the year which should push the share
price higher.

After banking a large profit earlier this month on this share we
now have the change to buy back in at a more realistic price and
benefit from this companies continued development.

And since ...

The shares drifted down to 31p in November probably due to lack of news from the company. The share recovered 1.5p mid November after an announcement by the company that its first product performed well in studies.

The shares rose to 50p in December and then up to 100p by the end of February after announcement that its Irritable Bowl Syndrome drug was going into clinical trials.

The shares shot up to 255p in early March for no reason. Even the company had to announcement that it knew no reason for the rise. They fell back to around 115p in mid March partly as a correction to the unsubstantiated rise and partly due to the general market fall eventually going as low as 98p.

We bailed out due to our stop loss at 1.83 on 13 March.

After repurchasing in early April at 115p the shares went to 143p in early May following tips in several Sunday papers.