According to an article posted on SA by the Stock Whisper, effective November 15, 2013, the generic versions, 8 mg, 12 mg and 16 mg doses of Exalgo will be allowed for sale by third party manufacturers.
Moreover, and much more import, by mid-May 2014 the 32 mg doses will also be allowed.
Based upon the foregoing, it should not take the wisdom of Solemn to discern that those events will have a substantial negative impact on the royalty received by Zalicus from sales, which will result in substantal negative sales of Exalgo.
On another note, the article related that Zalicus recorded revenues of $3.4 million in the third quarter, a $0.1 million decrease from the comparable quarter of 2012. The revenue missed analyst estimates by $0.26 million. The revenue included a $1.5 million of royalties from sales of Exalgo. The net loss for the third quarter was $10.5 million, a 13.5% decrease when compared to the relative period of 2012. The company incurred $9.3 million in R&D expenses, with approximately $5.5 million for phase II studies of Z160, which were ultimately discontinued. The company has cash and equivalents of $20 million, with an estimated burn of approximately $6 to $7 million.
So, who wants to gamble again before ZLCS seizes to exist or Corrigan and company are indicted?
Just because a company CAN produce a generic drug, doesn't mean they WILL produce it. It has to be economically feasible, and it remains to be seen whether they can justify the production facility to produce it.
While I do not disagree with your numbers and most certainly, the generation of revenues is important for extending a life line to Z a bit longer before further dilution is required, the fact remains that no one is in this stock for its current revenue stream nor for the potential sales (or lack thereof) of Exalgo. That would be a short sighted decision. The only reason to be in (or out) of this stock is conviction (or lack thereof) of Z944; the only pipeline drug worth looking at. Case in point, had the Z160 data been positive, no one would have cared what was going on with Exalgo. Indeed, it is a tuff decision, but with these small biopharma companies....everything is a risk. The payoff can be grand, the downside can be devastating. Pick your poison.
As for "indictment"; I cannot tell you how many times I have heard this claim when a drug trial goes belly up.....every time so the numbers matter not. Like all others, there is no impropriety here, just disgruntled investors (including me) looking for answers and a glimmer of hope for their investment. If you believe in the Z944 story and the preliminary data, stick around. If the risk is not to your liking, bail. Certainly no one can blame you.
Zinger, my comments have noting to do with Z160 failing. I can readily accept that fact. However, my disdain for Corrigan and his band of fraudsters lies with the unethical, possibly criminal manner Corrigan manipulated (timed) the RS and the timing of release of Z160 results.
Think about this. At no time did management release any data reflecting the degree of the RS, only an RS was upcoming, however, as positive news was circulating about Z160, thus enabling ZLCS stock price to rise above a dollar, Corrigan activates the RS. IMO, the stock would have remained above a dollar long enough to keep it from being de-listed.
Next, on the 8th of November, a Friday, ZLCs surges based on new, relevant news.
Then, on the 11th of November, one hour before the bell rings and at a minimum one week befoer the anticipated release date, Corrigan releases news that Z160 is a failure.
Are all the foregoing a coincidence? If you answer in the affirmative, then, you are either a ghost writer for Corrigan, Zalicus Corp, or simply obtuse.
You want facts?corrigan fakked everybody,and those are facts,everything else is an assumption,but like i said earlier,assumption is the mother of all fakk ups,corrigan is still making money,he makes money,and you hope to make money,dump this factory of poop before you lose all of it
Sentiment: Strong Sell