The company has made significant business progress during 2007. Firstly, it has crossed important regulatory hurdles by including new intellectual properties in the relevant listing of the US Food and Drug Administration (FDA). Secondly, its 2006 collaborative drug launch with a pharmaceutical marketing company has earned respectable market share during 2007. Finally, the company management has structured its clinical trial program to deliver potentially profitable, developmental products into a rich pipeline of possibilities.

The stock derives structural strength from the management’s ability to engage in fruitful collaborations with industry partners. Apart from its tie-up with a pharmaceutical marketing firm, the company is open to other licensing arrangements. All stocks from the Biotechnology & Drugs Industry can benefit from this approach to ensure productivity of invested resources.

Deliberate focus on appropriate therapeutic segments is another source of competitive advantage. The company has specialized in neurology. However, it has also made a significant entry into the management of heart failure. These medical conditions have strong technical fits with the company’s novel drug delivery system. The combination of a wide technical moat with commercial acumen makes the stock appealing to discerning investors.

Almost all of the company is owned by institutions. The stock is therefore a target for corporate acquisition. Total debts are less than equity, so the company has plenty of unused leverage. The Gross Margin has consistently exceeded 80%. The stock has been close to a 52-week low during late March 2008. Almost all investment signals point to considering the purchase, and retention, of this stock at this juncture.

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