Since my last post on Bioasis ($BTI.V) the stock has gone on a wild ride from $0.60 to a high of $1.80 before consolidating and closing at $1.38 on Friday. For those of you wondering if there is more upside to the story the answer is a resounding yes.

There was an interesting development this morning with a tie up between GlaxoSmithKline ($GSK) and Angiochem, another Canadian start-up working on delivering proteins across the blood brain barrier. In a deal similar to that between Bioasis and Shire ($SHPGY), Angiochem was tasked with delivering GSK's lysosomal storage disease (LSD) therapies into the brain. 

If successful in delivering GSK's proteins to select LSD targets Angiochem can expects to receive $31.5M up front, and potentially more than $300M in payments from GSK.

For shareholders of Bioasis this deal is a model we can use to value potential worth of the Shire deal. Remember that Bioasis current market cap is sitting at $48.3M and that within few months, or even weeks, based on the Shire deal alone, this could increase many times over in a heart beat.

LSD is only one part of the story however. Bioasis' has recently started an animal study program at the Texas Tech University. The goal of this study is to evaluate therapeutic potential of p97 and Herceptin conjugate drug: BT2111. The study is conducted by world's foremost experts in the field of drug delivery to the central nervous system for the treatment of brain tumors. The fact that they've taken on this study is a huge testament to BT2111's therapeutic potential.

In the following weeks and months we should see several important news releases as the results of the Texas Tech study, results of the Shire evaluation study, and potentially other partners come on board. The significance of the technology is such that Bioasis still has that 10 bagger potential, even from the current price level, so I have added to my position on this pullback.

ps. ICO Therapeutics (ICO.V), my other favorite biotech, has benefited from the recent rise in Bioasis' price as they have many investors in common. ICO should get very interesting in the second half of this year as the anticipation builds for the preliminary phase II data from their ocular edema targeting ICO-007 drug study. Their latest financing should be free trading soon so this might be an opportunity to get some shares in the low .30s.