I agree, they did the right thing and over-reserved for any charge backs that could hurt earnings, which is great that they recognize the issue and took the medicine.
I was impressed by the pipeline and the number of trials, which if just 10% of them work it will add significant profits.
I hope with this ridiculous price action today the company goes in and buys several million shares because with $71 million of cash $10-15 million repurchase today will be very accretive.
I think by the end of this quarter we will all be quite pleased with the sales, profits, and progress of the drug trials. Management's focus on identifying good indications will be far more profitable than over paying for another product.
You are right, I am optimistic. I got that way from reading the cc transcript and 3rd qtr report. Considering the circumstances, I was surprised that the IS numbers were as high as they were. The MS numbers were multiples of previous quarters, and are on track to be much bigger than IS use. If they get approval for IS, the combined incomes from MS & IS alone would be enough to bring the share price to at least double where it was in Dec 08. The kicker is that the company is actively seeking other indications for Acthar which would only add to the pot. Lots to be optimistic about.