[ad#PhycoBiosciences AIM Interview]

Money

Euglena soaring on Japanese stock exchange

May 20, 2013
AlgaeIndustryMagazine.com

Kengo Suzuki, head of Research and Development at Euglena Co., works in the company's laboratory in Tokyo. Euglena, a venture formed by the University of Tokyo, has soared 10-fold this year for the second-best performance on the Tokyo Stock Exchange Mothers Index.

Kengo Suzuki, head of Research and Development at Euglena Co., works in the company’s laboratory in Tokyo. Euglena, a venture formed by the University of Tokyo, has soared 10-fold this year for the second-best performance on the Tokyo Stock Exchange Mothers Index. Photographer: Tomohiro Ohsumi/Bloomberg

Satoshi Kawano & Kanoko Matsuyama report for Bloomberg.com that a Japanese biotech venture focused on making jet fuel from algae is soaring in Tokyo trading as cash being pumped into the economy by the central bank cascades into speculative investments.

“The market expects quantitative and qualitative easing to continue long term, boosting liquidity and drawing investors to speculative shares like biotech,” said Kazuyuki Terao, chief investment officer at Allianz Global Investors Japan.

Euglena, a venture formed by the University of Tokyo, has soared 10-fold this year for the second-best performance on the Tokyo Stock Exchange Mothers Index. The company is developing single-cell algae based products including jet fuel, which it expects to supply steadily by 2018, its President, Mitsuru Izumo, said in an interview.

The venture is currently valued at about 157 billion yen (15.35 million USD) and trades at about 335 times forecast earnings. Still, Japan’s fastest-rising biotech companies have yet to produce steady profit, so the investors’ bets are speculative, said Terao of Allianz Global.

The JASDAQ index had an average price earnings ratio of about 22, based on analyst estimates for the year, while the Tokyo Stock Exchange Mother’s Index, which includes Euglena, averaged about 74 times earnings estimated by analysts, according to data compiled by Bloomberg.

The multiples for many of the companies aren’t prohibitively high, said Tomohiko Ikeno, an analyst at Ace Research Institute. “It is still a good time to invest in some Japanese biotech ventures to hold long term,” Ikeno said. “The stocks will be volatile in the short term, but still have great potential for gains.”

Read More

More Like This…

HOME Algae Industry Jobs

Copyright ©2010-2013 AlgaeIndustryMagazine.com. All rights reserved. Permission granted to reprint this article in its entirety. Must include copyright statement and live hyperlinks. Contact editorial@algaeindustrymagazine.com. A.I.M. accepts unsolicited manuscripts for consideration, and takes no responsibility for the validity of claims made in submitted editorial.

From The A.I.M. Archives

— Refresh Page for More Choices
Renewable fuels company Muradel has launched Australia’s first integrated demonstration plant to sustainably convert algae into green crude, as a first step towards a com...
In October 2014 an unusual AlgaePARC research paper entitled Design and construction of the microalgal pilot facility AlgaePARC was published in the Journal of Algal Rese...
Designboom.com is showcasing the “Spirulina Fountain” designed by bureau A. The installation constitutes a hybrid, fusing the production basins of the intense blue-green ...
Researchers Greg O’Neil of Western Washington University and Chris Reddy of Woods Hole Oceanographic Institution (WHOI), have exploited an unusual and untapped class of c...
Kevin Valine at the Modesto Bee writes that the California city of Modesto may sell the algae that grows in its roughly 1,000 acres of sewer ponds at its Jennings Road wa...
As one of the most water-poor countries in the world, Jordan’s current water resources are significantly below the global water scarcity line. Annual rainfall falls under...
The vision of developing a community college degree program to train a high technology algae workforce was launched at New Mexico's Santa Fe Community College (SFCC) in 2...
Jessie Rack reports for NPR that demand for plant protein of all types is growing in concert with the growing interest in the U.S. to reduce meat consumption. People, fro...
A new $1 million relationship between Michigan State University and ExxonMobil will expand research in the fundamental science to advance algae-based fuels. Dr. David Kra...
Ewen Callaway writes in the jounal Nature that restrictions on harvests and exports of Gelidium seaweed in Morocco have affected the global supply of the lab reagent agar...
Nevele, Belgium-based TomAlgae is developing freeze-dried microalgae for feed in shrimp hatcheries. The company has created its own microalgal “cultivar” and manufactures...
A multiple-effect evaporator (MEE) is a system designed for efficiently using the heat from steam to evaporate water. This equipment is recommended by pollution control a...