more analyst recommendations to follow after today
This statement will take care of a significant increase in institutional ownership. Investment companies already knew that the products did work and already knew the market potential, but did not yet know if there was any additional need for a capital raise. After today's financials it is absolutely clear they can bring their main product to commercialization without any additional need for capital.
I expect more analysts to give acrx an outperform rating (buy recommendation).
Don't look for any additional analysts to follow as those that do follow have been paid for their investment banking and stock offerings. There's not anything left for others to get paid to pick up coverage. Even some of those who have been paid have seemingly drifted away.
three more reasons why Zalviso will be a true blockbuster... from the transcript of the CC:
"People like patient-controlled analgesia from a variety of perspectives. But they also like this technology, this preprogrammed, noninvasive delivery technology. Surgeons like the noninvasive part of it. It allows patients to get up and ambulate, which allows them to get to recovery and out of the hospital faster. It's good for patient and for surgeon.
Nurses like the preprogrammed nature of things. It reduces their time required to program and the risk and exposure that they experience. And patients like the fact that as a noninvasive delivery, they're not having to walk around with an IV infusion aligned in their arm that they can basically use that postoperative pain med as they need to, put it down, and go to the bathroom or the physical therapy as required.
By the way, physical therapists love it as well, because the challenge of trying to actually get somebody through a rehabilitation process. Whilst they're taking a pole with them and a swinging IV PCA pump and tubing and so on, it's very challenging indeed. So it has a whole variety of different positive connotations to a host of different patients. So that also applies by the way in the non-surgical patient population."
They may not need another capital raise to commercialize, but that doesn't mean they won't have one. They will greatly increase the burn rate as they build the sales force in advance of approval sometime in Q3 2014. They will want to keep a one year cash burn minimum, so I would not be surprised if they do another raise prior to Adcom/ pdufa.
Their main corporate objective in the near term is selling the European rights to Zalviso. This will 'pad' their existing cash position, thus eliminating the need to raise more cash. No way Adrienne Adams, the Chairman of the Board, would have bought shares at $8.19 unless he felt confident ACRX would trade much higher.