Excerpt from The 50 Best Science & Technology Stocks for Canadians:

Quebec-based Axcan Pharma is the leading North American pharmaceutical company in the field of gastroenterology. Founded in 1982 as Interfalk by Leon Gosselin and Dr. Herbert Falk, the company launched its first product, Salofalk^®, a treatment for ulcerative colitis, in 1986.

A year later, the company began a research collaboration with the Mayo Clinic on the treatment of primary biliary cirrhosis with ursodiol. Axcan’s drug Urso^® was approved by the FDA in December 1997, giving Axcan the distinction of being one of only four Canadian companies ever to have received approval for an innovative drug from the FDA.

Over the years, Axcan acquired a number of non-prescription gastro-intestinal medications to complement the company’s lines. These include several drugs from Wyeth-Ayerst and Jouveinal Inc.

Axcan also adopted a strategy of acquiring gastro-intestinal- related products in the late stages of development from other companies. It would then complete the clinical trials and bring them to market. One product so acquired is Photofrin^®, a light-activated treatment for esophogeal cancers and Barrett’s esophagus purchased from QLT Phototherapeutics. Photofrin is already approved for use in 11 European countries and is now awaiting approval for the U.S. market.

Axcan acquired American company Scandipharm in 1999, becoming the first Canadian drug company with its own U.S. national sales force. The company is now poised for its next stage of significant growth.

Leon Gosselin was honored as Quebec’s Entrepreneur of the Year in September 2000 for his outstanding leadership in the health sciences field.  (End of Excerpt)

Since I wrote those words, Axcan has acquired French pharmaceutical company Laboratoires Enteris S.A. giving it a solid base for growth in the European market.

The company reported a 19.5% increase in revenues for fiscal year end Sept. 30, 2001 with a 129% increase in earnings from continuing operations. Photofrin and Canasa, a new product launched in the United States in April 2001, contributed to the revenue growth. More products are in the pipe including Helicide, a treatment for peptic ulcers, as well as additional uses for Urso.

In September the company was named one of the fastest growing companies in Canada in Deloitte & Touche's annual Fast Fifty list. What sets Axcan apart from many of the others on the Fast Fifty is that it is profitable as well as fast-growing, a winning combination!

Axcan Pharma reports in American dollars and is traded on the NASDAQ exchange as well as the Toronto. It has had a strong run-up from $17.00 on Nov. 22nd to Dec. 7th high close of $21.10 - a jump of 24.1% on exceptionally strong volume. Strong buying and little profit-taking has kept attempts at correction to within 8% of the stock's peak level, and in fact, has carried the stock higher since soaring the week ending Nov. 30th. There could well be some further consolidation, but the long term trend of this stock has been solidly upwards since January 2000.