I'm not trying to bash this stock and I have already disclosed my short position but these approvals are non events. We now know why it has run in the last 4 days. HITK targets all these billions but by the time they are approved it's small potatoes. There are over 5 players already with generic Keppra soln' including Taro, Lupin, Activis, Salarix and the brand company who retains a significant amount of the 69 million annual sales simply b/c when seizures are controlled providers do not like to change suppliers. HITK will get very little of the sales here IMO. The cost is around $20/pint and the cost to produce I would imagine is pretty high. Stong sell above $40
Rxman...you better cover your shorts asap. This crab may fly soon as there are some big brothers on the radars. You might have losing more than 20% upside risk versus only 10% downside profit. Nowadays in Wall St., never use the earning calculation to judge a stock. Evenwhen the stock didn't make any money, it still can fly. The only reason is to see if the big brothers are loving this stock or not. I believe this one will be the NEXT SUPER.
qab......you have been so negative on HITK from it's march from $20 up. Why have you changed your outlook? You are now long and so you are a cheerleader right? 500 million market cap is overdone for a company with comodity drugs.
Personally, I think it is all about earnings - when we don't rely upon earnings, we have a bubble and burst. It certainly provides a base that attracts interest (a pe that is under 10 and with growth potential is certainly inviting).
But your optimism is certain welcome (particularly given you previous and ocassional bouts of pessimism). Do you have a specif reason? Do you suspect a new product on the immediate horizon? Or the growth of a present product?
I agree that this is no big deal in and of itself. If this adds $5 million in sales, that will be a lot. And hitk had said that they were only expecting sporatic approvals for awhile, followed by some consistent stream in about 9 months or so (my memory of the last cc on earnings).
But it is an approval, which means that the fda is approving hitk's applications. And they still show $1.5 billion in market for the 14 applications still pending (although I would think the PAR partnership is nearly half of that).
More important - do you know what was said on the conference call today? I will not be able to listen until tonight,