Another very encouraging piece of news out today, concerning one of the most interesting cases on the Swedish stock market right now, Nexam Chemical.
Nexam has today received a notice of allowance from the European Patent Office (EPO) that the company’s European patent application regarding its crosslinking technology for aromatic polyetherketones (PAEK) will be granted. Nexam has developed several special crosslinkers for PAEK. The largest plastic within the group PAEK is PEEK. PAEK is a plastic with excellent mechanical properties and chemical resistance, even at very high temperatures. With Nexams crosslinking technology, the processability of the plastic improves and properties such as heat and chemical resistance increases. The PAEK market amounts to about 4,000 tons and is growing annually by 10-15%. The main application areas are within automotive / transportation, electrical & electronics, industrial machinery, aerospace and oil & gas, all industries with heavy investment i.e. big money to make! The granted patent gives Nexam future protection for its technology and products in this area. We are talking about a market for very high performance plastics with high prices. Nexam is currently working in projects with several leading producers of these plastics., says Dane Momcilovic, R&D Director of Nexam. Nexam currently has, in addition to already approved patents, 40 patent applications within 12 patent families.
The good news keep coming and 2014 seems to become the absolute breakthrough year, both for Nexam operationally and for its share price. It is not very hard to imagine that the now approved patent will lead to further commercial orders soon. Given the multi-billion dollar market potential, the current market cap of SEK 1.4bn is very humble indeed.