KCI, a private firm that is big in this space, must be quaking in their boots over this Grafix trial.. And Smith and Nephew, a global player in this space and in orthopedic reconstruction, must be looking at this mulling over a bid. SNN. $11 billion company.
Take it from a guy who does more shorting than going long. You need to go listen to the conference call.
I don't think you realize just how tough to treat these sores are and how big a problem it is.
The results that Grafix obtains are leaps and bounds above current treatments. And this was a very tightly run trial. No ambiguity here. They will own the market, without question.
These guys have actually been able to get stem cells to regenerate and close the wounds. Incredible.
Do the math. The market is $2 Billion and growing fast. Look what happened to REGN when they changed the Wet AMD treatment market. The stock was a 10 bagger.
Yeah, it hurts to cover at a loss, but it's going to hurt a lot more over the coming weeks and months. And remember, you can only lose 100% of your investment going long. You can easily lose 5x or 10x going short.
Just cover your short and buy a partial long position. If you are lucky enough to get a pullback, keep adding.