Profit taking from some of the longs more likely... although delayed, the short number have,'t moved much. But those who bought in big time <$1 may be taking risk of the table. That has been the advise coming out of several broker houses anyway -
Q2 results clearly showed that Axiron held its pricing power in the market - yes volume was down but the fact that sales held, drove the price to correct towards fundamental value (>1.50's). These levels represent fair value in my opinion, if you assume Axiron can modestly grow share and volumes over the next 5 years.
There is significant upside if they can exceed this with large associated milestone payments - in that case you would say the ACR is sig undervalued
But, if the reverse turns out and the generics damage pricing or the FDA makes an unfavorable ruling the the downside would be sign too. In that case ACR is undervalued.
Again - as i have said before Bob (many times!) - that's the magic of markets. No side 'controls the price' - the price reflects expectations and over the long term moves towards where the fundamentals are pointing - where the ACR price heads from here is based on how Axiron performs over the coming years.
Those that understood the testosterone market, Axiron and how ACR actual makes money - have made a lot of money over the last several months... where to from here - as a holder, now significantly in the green - i watch with interest
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