There’s an upside and a downside to major – or perhaps we should say monster – pullbacks. they hurt in the short run, but when the company is solid, it’s ultimately a buying opportunity. Case in point –> Apricus Biosciences inc.(Nasdaq: APRI). This biotech name wasn’t (and still isn’t) immune to the market’s short-term bearish volatility. when the underlying story is a compelling one though, it’s stocks like APRI that manage to come back fighting over and over again.
Though Apricus has a lot of developmental irons in the fire (including treatments for cancer, autoimmune diseases, pain, diabetes, and sexual dysfunction), it’s not just another cash-burning biotech. Apricus is driving revenue, and better still, may be generating profits sooner than most investors realize.
Oh, both the top line and the bottom line will certainly remain volatile for quite some time, but even an unpredictable profit is still better than a predictable loss.
While the treatments APRI is working on are varied, there is a common element… the patented NexACT drug delivery technology. It’s been shown to be more effective in comparison to oral and injectable medications, but just as impressive is the wide variety of treatments that can be offered. NexACT employs novel biodegradable excipients, or “penetration enhancers”, to improve absorption and bioavailability of a drug. the treatment can even be targeted to reach a particular absorption goal by varying the strength of the excipient.
The focal drug so far has been Vitaros(R) - a treatment for erectile dysfunction. It was recently approved for sale in Europe, and the company hopes for approval in Canada by the end of 2011. the Latin American market will be the next target market, where the ED market alone is approaching $350 million. Worldwide, some experts suggest the erectile dysfunction market is worth a much as $3.0 billion per year. Apricus Biosciences is still assembling Vitaros’ partnership programs and fine-tuning the manufacturing process.
For reference, burns about $23 million a year to develop several drugs. It won’t take a large piece of the ED pie to get over the profit hurdle. Any additional approvals in the meantime will only enhance that upside for the now-$64 million company.
APRI isn’t a one trick pony though. It’s working on Femprox - a treatment for female sexual arousal disorder – and MycoVa, which treats nail fungus. Both are in Phase III testing right now, and may or may not need to go through further Phase III trials. Upcoming meeting will ultimately determine whether or not Apricus Biosciences will be able to request an outright approval.
The oncology and autoimmune treatments aren’t nearly as far down the development road, but there are several of them… and it only takes one blockbuster to make an investment worth the wait.
The first wave of approvals for its current Phase III and near-approved drugs will likely keep things exciting – and bullish – for 2011 and 2012. Past that, there’s not a whole lot that’s close to approval. then again, investors will be too busy watching Vitaros, Femprox, and MycoVa sales grow.
APRI is one long-term investors can tuck away with relatively little worry… by biotech standards anyway.
<a href="http://www.smallcapnetwork.com/Apricus-Biosciences-Inc-APRI-in-a-Sweet-Spot/s/via/1789/article/view/p/mid/1/id/48/tag:news.google.com,2005:cluster=http://www.smallcapnetwork.com/Apricus-Biosciences-Inc-APRI-in-a-Sweet-Spot/s/via/1789/article/view/p/mid/1/id/48/Tue, 09 Aug 2011 13:54:18 GMT 00:00″>Apricus Biosciences Inc. (APRI) in a Sweet Spot