John,
I think your right on target with your comment: "the potential market is so big, that competition HELPS get the word out. Helps get more potential customers trying it quicker."
I first acquired Anika when it was spun of from MedChem for $3.50 back in June 1993.
I remember reading Peter Lynch's advice to watch out for spin-offs, since they usually do very will when free from mommy.
In 1993 Anika was developing ORTHOVISC for the treatment of temporomandibular joint dysfunction (TMJ). Our friendly FDA wanted more info, though, and Anika's stock dropped. I bought much more when it fell below $2 in late 1994 and, of course, I'm glad I did. Investing in Anika was much more risky back then, but the risk/reward ration seemed very favorable to me, since as you said: "The market potential is so big."
Anika eventually resubmitted ORTHOVISC to the FDA for the treatment of osteoarthritis of the knee.
As you and others have pointed out, HA's a new method of treating OA, and it appears Biota's proving it to be clinically viable. In a few years "Wall Street" will realize the potential of the HA market. It's definitely big enough for more than one small company, like Anika or Biomatrix, to greatly increase its earnings.
I'm still very bullish on Biomatrix and Anika, but, by far, my largest stock holding of the two is Anika.
I've got a feeling after Anika's ORTHOVISC proves successful for treating knee OA, we'll see it submitted to the FDA again for treating TMJ.
Why do you think ORTHOVISC is a year off? Sooner, I'd guess.
Mike |
