Hello fone geeks,
I'll have a go at 'proving otherwise'. I think you are wrong about Asia.
The market is, in fact, very significant.
Take the Company's investor presentation in June, for instance. The company provided the following observations and estimates:
• Use of Ketamine is wide spread throughout Asia
• Ketamine is the Largest illicit drug of abuse in China
• Oraline has Detection sensitivity of 150ng/ml for ketamine compared to 1,000ng/ml for existing urine tests
• Expected annual volume for China 1 million units
One million units a year must translate to around $1m a year profit – enough to support the current share price. And that’s just China!
You can also find any number of articles on the web re the size and growth of illicit drugs in China. Try this one for example (from 2005):
"China's urban elite embrace 'rave' drug culture
I often wish that international newspapers and media organizations would simply speak to long term China expats instead of waiting for the government to announce their latest ‘crackdown’ on the latest scourge on society. They would get their stories a lot more quickly.
For example, this disturbing report about the increased use of designer drugs among young Chinese urban professionals. I have personally known about the use of Ecstasy, Ketamine and Ice in China for several years:
A "people's war" on narcotics in China has turned into a campaign against designer drugs after police found a surge in usage of ecstasy, ketamine and methamphetamine, or ice, among urban professionals.
In a shift that may be down to a booming economy and the growing influence of globalised culture, Chinese authorities said this week the focus of their anti-drugs campaigns has widened from disadvantaged social groups - such as minorities, prostitutes and the unemployed - to affluent white-collar workers.
According to the domestic media, the public security ministry launched a campaign against "new drugs" - synthetic stimulants and hallucinogenic chemicals - which are popular in nightclubs and karaoke bars in the fast-growing cities such as Shanghai and Chongqing.
Previously, the only media reports concerning drug use in China have focussed on heroin, particularly in Yunan Province, opposite Burma’s infamous Golden Triangle and Xinj1ang, opposite Afghanistan.
To a lesser extent, also cannabis, mainly entering China via Xinj1ang.
China’s frequent use of the death penalty for drug dealers has not stopped the massive growth of drugs where large and easy profits can be had.
China’s official figure of 790,000 drug users in 2004 is laughable. As this report suggests, a figure in the tens of millions would be more accurate. For instance, more than 80% of prostitutes in Guangzhou are addicted to injecting heroin, 400 yuan per gramme at today’s prices.
Ice, Ketamine and Ecstasy first became available in Mainland China via Hong Kong several years ago. Now, all of these designer drugs are widely available in China’s cities, usually up-market nightclubs. Working together with Hong Kong triad societies, China’s criminal gangs oversee the importation and distribution. However, the prices are high, 600 yuan is not unusual for a single hit of any of the three party drugs. This, however, does not seem to effect popularity.
http://www.pekingduck.org/archives/002931.php
HGR
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