Very nice move up today. Investors realizing that OPTR now has the cash runway to get to breakeven. Jefferies report today very reassured about growth trajectory, and actually sees fair value at $22/share. Management team consists of ex-big pharma commercialization experts, as witnessed by the multi-pronged strategy they just rolled out to drive revenue growth.
From Jefferies report 10/10/12 by Eun Yang:
"Estimated cash of ~$160M (including $60M from the sale of its stake in subsidiary OBI in Taiwan) sufficient into 2014. OPTR indicates Dificid could achieve sales trends similar to Cubist's (CBST, Buy, $46.63) Cubicin sales, if its new strategy is successful (Cubicin U.S. sales of ~$59M/$114M/$189M in 2004/2005/2006). At its current burn rate of ~$30M/Q, OPTR would break even at ~$120M in revenue; if not, to reach break- even in 2H14, it would adjust OpEx."
Shorts are mistaken that the price reduction will hurt profits. The price reduction is not overall, but in selected profiles which will increase its use in those areas, cutting only that per patient cost, yet increasing the volume of patients supplied. In the end -- PROFITs will grow.
Thanks for that Jeffries report. I do respect them -- from some of their other activities they have earned it. That target would be a 12 month, I expect. When we pass $16, it will start to be very tempting AGAIN. That is the time shorts short, and for me longs sell. Maybe I'll be a little more patient next round.