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Consegna Group (ASX: CGP) is the subject of a recent broker report by Veritas Securities which places a buy recommendation and 12-month price share price target of $A0.02 to A$0.05 on the company.

The following is an extract from the report.

CGP's strategy is to identify, acquire and commercialise under-valued late stage therapeutic delivery technologies in high value markets and indications, using an acquisition strategy driven by strategic value creation, patent protection and realization criteria.

This involves resolution of both technology and market uncertainty, to enable transactions with appropriate partners to build shareholder value.

Major Investments

Since late CY2010, CGP has invested in 4 late stage technologies: BreatheAssist™ - A revolutionary Australian developed nasal dilator (device) that fits within each nasal passage, which is a multifunction platform for:

- increasing airflow during exercise for elite athletes.
- delivery of drugs suited to nasal delivery.
- reduction of snoring and problems related to sleep apnoea.
- filtration of pollen or airborne droplets carrying viral particulates.

CGP has appointed a brand ambassador and is in licensing discussions with multinational parties for an initial launch in the sport performance market, where it has defined advantages over existing technology.

Vibrovein™ - A vibrating device that attaches to any syringe to reduce resistance to penetration, reduce stiction and the trauma, pain and bruising experienced by patients. Vibrovein has over 5 years of clinical use and has both human and veterinary applications. Vibrovein has a targeted product launch for Q3 3013.

Aspen Medisys - An iron oxide nano-particle technology for treating solid tumours, through the injection of the magnetic nano-particles and the use of magnetic heating to destroy the tumours. Aspen has both human and veterinary applications.

CGP has announced an intention to demerge Aspen by way of an IPO or demerger into a separate vehicle and ongoing commercial discussions with a European Group.

Linguet™ - A multi-function buccal (orodispersible) tablet drug delivery platform, where a linguet tablet placed under the tongue or the buccal cavity dissolves and releases an active drug, which is immediately absorbed into the blood stream via the muscosa of the mouth.

Linguet is to be demerged from CGP into Imugene (IMU), with CGP holding an ongoing interest in 100m shares (initially a 29% interest).

Investment Case

- CGP has late stage therapeutic delivery technologies in high value markets and indications.

- Each investment has distinct advantages, with clear paths to commercialisation.

- CGP operates a low fixed overhead model, giving substantial leverage to success on commercialisation of its investments.

- CGP has a well-credentialed management team backed by successful best in field regulatory, intellectual property and scientific advisors.

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