The Q3 reported development issues have been worked or are being worked i.e.; the channel inventory and sales growth of Zadaxin; NovaMed acquisition matters, including licensing and product services agreements with third parties and contingent consideration remeasurement; internal control issues primarily within the NovaMed organization; and management turnover.
The Company "anticipates" good revenues and cash generation throughout 2013. The 4th quarter 2012 seems to have cleared the wholesaler inventory issues with some small positive earnings for this quarter. The sales growth of Zadaxin is a 15% volume or more with Sinopharm partnering with SciClone. The internal control issues have been worked through (waiting on the US investigation to conclude). New management is in place looking over internal control and managing an expanded sales force to assure revenues are growing. The Sinopharm relationship seems to assure the Company can get their license to import Zadaxin into China renewed in 2013 for another 5 years. The Company has more and new products to sell in China. Depakine could sell better and DC Bead could be approved given the partnering with Sinopharm.
Stable revenues and growth in them, no debt, and good cash available makes for a higher valuation and share price in 2013. Looks like $7+ is a good future SP.