A Possible New Drug Abuse Deterrence Business Model
The healthcare sector provides a diverse group of investment candidates for investors of many types. From the dividend-paying $66.72 billion heavyweight Bristol Myers Squibb Co. (NYSE:BMY) with a closing share price of $40.50 on Monday, April 15th to the fledgling $1.87 million market capitalization MultiCell Technologies Inc. (PINK:MCET) with Q1 revenue of $12,329 while operating at a Q1 loss of $385,845, investors of various risk tolerances and investing styles can secure gains in either, but with obvious differences in risk, upside potential, and investment timeframes being obvious. There is even a niche group of investors who invest in small pharmaceutical companies undertaking clinical trials in an attempt to reap the rewards of regulatory approvals with potential gains of many hundreds of percentages, while risking the downside of a devastating failed clinical trial or regulatory rejection from the FDA in the form of the dreaded complete response letter, often resulting in greater than 70% losses upon announcement. While solid gains in the long term or short term are possible with any range of pharmaceutical companies developing new therapies for various indications, the risks associated with the negative events can be too much for many investors to tolerate.
There is another option for solid gains with much less risk, a type of “investment hybrid” of the safer revenue generating large pharmaceutical and the larger upside, but higher risk of a development level pharmaceutical. I would like to introduce a small capitalization pharmacy company with possibilities of large gains without the risks associated with development phase pharmaceuticals. Assured Pharmacy Inc. (APHY) is a specialty pharmacy based out of Frisco, Texas. Rather than dealing with the volatility and risks involved with developing therapies in expensive clinicals with uncertain outcomes, this company instead markets approved drugs in the U.S. However, the company is not an upstart version