There are many superficial reasons to bypass this stock since investors have so many choices within the Healthcare sector. However, a full appreciation of the versatile know-how cultivated by this company will show that the stock represents extraordinary value compared to its peers in the Biotechnology and Drugs industry.
The company is active in a wide array of cutting-edge technologies for its size, but the present value of its formulation products are the most attractive. The company has developed a proprietary way of delivering drugs through human skin. Using patches is both convenient as well as suitable for avoiding undesirable side-effects on non-target parts of bodies. Investors must note that the company has US regulatory approval for its technology as applied for an important hormone. There are innumerable options for the company to apply this technology to all pharmaceutical substances.
Though topical formulation know-how would be sufficient for any corporation to grow, the company also has a technological breakthrough on another front: it is able to produce vaccines for viral diseases, using a novel approach. The latter mimics the structure and behavior of viruses, without having any pathogenic consequences. The US government and key players from the pharmaceutical industry have funded research and development by the company in extending this new approach to vaccine production. The process involves insect colonies rather than chickens, which has inherent cost and scale-up advantages.
The management has displayed innovation in financial management as well: it has sold all North American rights to its formulation for treating menopausal disorders to a private equity owned firm. It has retained options to continue business in the rest of the world, while generating significant and immediate cash flow. This creative approach gives multiple future options to service equity, though the company remains an attractive target for acquisition.
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