While my initial reaction to the Parent's Choice deal was tepid at
best, it is now cold. Why? One word: Psychemedics. If I was an advisor to Chemtrak I would tell them to forget about the whole thing. My only hope is that they've got nothing to lose in the deal since they will
just be a distributor. And those royalty payments? Let's hope they are tied directly to sales. No sales, no royalties to Stormy Cloud and Co.
Chemtrak really needs to do something to distinguish themselves from the crowd...like they did initially with the HIV test. But then the FDA doused that flame with their foot dragging. According to what I last heard, the FDA approval was expected in June??? An "Hp Chek is go!" announcement from Astra-Merck should be any day now too! Okay, I need to remind myself why I'm in this stock:
Present: Cholestrak, Colocare;
Near term: Hp Chek (Astra Merck), AWARE (Chemtrak), HIV test system
(Selfcare);
Later this year: Parent's Choice thing (sigh..); theophylline test;
Down the road: HIV rapid test; PSA test; menopause test, osteoperosis
test, and others being looked at.
My guess is that with all the above, Chemtrak can easily reach its current market cap in terms of gross annual revenues.
And as for the me-too comments? Well, there are a lot of people in the world. The markets are large enough for several players and products. Have you been to the toothpaste section lately in your supermarket?
Also, anybody think it is worth pressing Ed C. and Co to have ColoCARE co-located on the store shelves with other rectum-related products?
Bill |
