Good point, PTK -
Obviously there's a lot of risk in Dimethaid - too much for most investors. Nothing wrong with that.
The question is: does that reasoning apply to everyone? Is there no possibility of upside to DMX? No possibility of FDA approval for Pennsaid? Is it possible that the disinformation campaign waged on WF10 has left an erroneous impression of the drug's true worth? Is there no potential, none at all, in Penecure?
In the final analysis, is it possible that Dimethaid can be turned around, and see EPS in a few years? Especially when it's properly managed?
Dimethaid's unrealized potential - especially when you graph the impact of something like Penecure on profitability - far exceeds the examples you judged DMX against. None of the companies you cited had any reasonable prospect of that kind of significant upside.
Has anyone here taken the time to sit down, and run the numbers? If you do, you'll see that something like FDA approval within a year will turn this company into a whole new ball game. Basically, everything is covered, except R&D - and some of that is covered, too.
For WF10, approvals and sales don't just have to come from the FDA. Drugs can be, and are approved in Europe - faster than in Canada. If Dimethaid starts producing from Germany, then the attitude of the German government towards Pennsaid might be reconsidered - and more. Anyone who has taken the time to research the international biotech scene realizes there is significant possibility here.
Be clear: this is NOT advice to invest in DMX. If there's too much risk for you, then for heaven's sake, stay out.
But given the following factors:
1 - The company CAN be saved: there may be too much damage
2 - Operations - and cost of operations - can be rationalized
2 - New management proves capable
... an understandable case for buying can be made. Air Canada, Laidlaw and Livent only wish they had the untapped potential Dimethaid has. Run the numbers - even with very conservative projections, and you'll see it for yourself.
Jim |
