Dave,
"Whither DMX now ? They have no money. They can cut expenses somewhat but will continue to bleed money. They have no prospect of significant revenues in the next 3 years"
Companies with strong mangement that have the trust of the street can generate financing even with a drug that is 10 years off. 2-3 years is not a long time for a big pharma who needs a pipeline boost, especially when the product has huge market potential, already has completed many PIII trials, is proven in other countries, and has excellent odds at final approval.
We also forget that with Vioxx being pulled world wide, and Celebrex not far from the same fate, capturing enough of the existing markets to be profitable should not be that difficult. Capturing just 5-10% of the Vioxx scripts in Canada will make Dimethaid profitable.
The important thing here is that FDA is in play, which is less than we knew a few days ago. As long as that carrot is on the end of the stick, and management is forthright and honest with the street, financing will always be available.
"Kuhne is dumping shares on the market"
He only has about 5 million shares. With the volume we are having, the selling will not last long, and may have already been absorbed.
"With the trials for Pennsaid on going, I doubt they will start any Penecure or WF10 trials any time soon."
You obviously assume they will not partner for Penecure or any WF10 indications. I am betting the exact opposite. In fact I am quite positive it won't be long before the first partnership is signed. Dan and gang have made it known that partnering is a critical part of the new strategy. Furthermore, they have strong management depth in the area of partnerships, with both the new CEO and one of the BOD members, who has made a very successful career in this area.
This story is a long way from written. I am extremely confident that the new management will turn this into a success story, despite the massive hole they are starting from. I'll say it again, we've all been whacked over the head by REK so many times that we're completely numb to the potential that lies before us. We now have a mangement team that though competence, honesty and hard work, will show us the shine on that gem.
joe |
