thats because personally i do not believe its a company making ANN as a lot here do. Reasons being:
1) its competing in a market worth $25m in the last 12 months - not large at all IMO. So question here is how much of that share will ACR take or alternatively can ACR product increase the market for sales?. Given there will be other generic competitors coming online as well it will IMO be a very crowded market so success will depend on marketing/getting doctors on board for scripts etc. Now that brings in the second point:
2) ACR receive a share of profits - are you aware how the profit shares are to be apportioned?. In addition the profits will come after all marketing costs one would assume so what incentive has the company the deal has been brokered with to minimise marketing costs?. initially i would expect that there will be a huge push to get ACR product recognised so that will impact on profit share. terms of the commercial arrangement have not been released sufficiently to determine what the actual profit share is calculated at and whether there are any other terms/conditions relevant to this.
so unlike posters here i am not expecting too much from this one.at all. It was IMO always a ploy to get something anything on stream ASAP given the dire situation the company was facing with really nothing on board - as shown by the depletion of $30m reserves over the years.
so am expecting substantially more on the ones yet to receive approval - really need to have the terms of the commercial arrangement to have a closer stab at what could eventuate. But from what i am reading every man and his dog is getting in on the generic market so ACR really need to stand out from the pack to achieve any decent returns. all IMO.
ACR Price at posting:
22.5¢ Sentiment: None Disclosure: Held
