Was on the call last night, pretty surprised at the potential here.
Net loss of only $800K for the quarter. Revs increasing from $14.4M in Q112 to $16.7M in Q212. They are on a run rate of about $64M in revs, which at a 5X multiple for companies with increasing revs, should put them at $320M market cap. They are currently trading at $171M market cap. They also have $88.6M in cash and equivalents at end of Q212.
Major potential for PPS increase, as they have lots happening in Q3/Q412 including: -they just got Japan approval for Amitiza, and expect $15M milestone on first sale -potential UK approval for Amitiza by next month -FDA acceptance of their sNDA for non-cancer pain in Q3. This is the first oral product filed. -they just ironed out their differences with partner Takeda and fired the COO to smooth things over. I don't rule out a takeover at this point. They should be profitable in next 2 quarters.
The issues with SCMP are a CEO who isn't the wall street type, and very little analyst coverage. This has bottomed out and will only go up from here.
Good to see the slow steady rise of 19% over last 2.5 weeks. UK approval to be announced in next 30 days. $15M milestone pending on first sale in Japan. We should hear back on Amitiza FDA acceptance in next 30 days as well. Expect to see a few spikes shortly which might be good profit-taking opportunities.