This stock is an unusual case of exceptional inherent value. The company is yet to enter the commercial and profitable phases of its business. The stock price has more than doubled on the last day of this leap year’s February, compared to its 52-week low. At least one highly respected stock market analyst has vaulted the stock to the outperform category. Investors need to appreciate the pharmaceutical industry developmental process, to value this stock correctly. It is a case in which financial expertise is not enough by itself.

The company has been formed around a novel technology. This consists of mapping detailed structures of active substances used to make drugs. The technology offers two key business benefits. It allows the company to develop generic versions of patented medicines. It is also a versatile platform to develop new and improved drugs. Some of today’s most successful pharmaceutical companies have used similar business models in their early business lives.

This company’s management seems to be as astute in business as in technology. It has associated with Sandoz, the generic arm of pharmaceutical major Novartis for marketing and commercial development. This gives the company huge strength in penetrating the US market, and the European Union as well. Sandoz is based in Geneva.

Investors can see financial acumen in the choice of therapeutic areas that the management has chosen. They are all large market segments and can support the incredible record of 100% Gross Margin that the company has build over the past five years.

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