When there is money in the bank, this company gets very lazy.
When there is little money in the bank, this company gets very dilutive to replenish the bank.
Facts: This company licensed a drug (Surfaxin) from J&J back in the mid 1990's. The drug had already been through Phase 2 testing. All they had to do was run Phase 3, submit, and gain approval. They didn't even run the Phase 3's until 2003. They were turned down in Feb 2005 and five additional times because they didn't (A) run the Phase 3 properly, (B) run the plant properly, and (C) do what the FDA asked.
The original patents have mostly expired. The last of the original drug patents expires this November IIR.
For years DSCO touted the drug as the answer to all lung/breathing issues for all mankind. Now the FDA requires them not just to say Surfaxin is only approved for preemies, but because of the risks to adults found during several trials, to specifically warn doctors NOT to prescribe Surfaxin to anyone other than an at risk premature infant (who is subject to dying without it). Yet the company continues to claim a "potential" Billion dollar market. A claim they can make because it is covered under the Safe Harbor provisions for forward looking statements.
Presently the company has enough cash in the bank and available through the ATM program (which requires no announcement of secondary stock placements) to last until about the end of the first half of next year. So we are in a "lazy" period. Launches, product sales, etc are either on hold awaiting FDA approval (for a drug supposedly already approved.... go figure on THAT one), or are replaced by give away programs because money is not an issue.... today. One of two things will happen in the next couple of months... either DSCO will start giving away Surfaxin as they are the Afectair nozzle, or DSCO will announced yet another delay.... but probably not until after the ASM in June..... again.. we are in a lazy period.
Thank you for your response, Dutch. You dropped some good info in that nice post. I like to read both contrarian and bull side of a trade because somewhere in between lies the truth. Yours is closer to reality of what DSCO has been for the better part of my involvement in the stock.
High risk, high rewards. Some people don't have the stomach for it. I would say ,imho,With this companies past record , nobody expects much. But, If things go right then Big money will be your reward for your faith.
I bought DSCO at 3.75 after FDA approval. It tanked to $2 within few days. I took my loss and walked away but I've kept an eye on recent development. I'm honestly not the type that sits there and watch value eroded. I'd rather take my loss and break even through another opportunity as fast as possible but I do hope things work out for DSCO eventually.