| Biotech product has applications in multiple multi-billion dollar markets | | Print | |
| Written by M.E.Garza | |||||||||||||||||||||||||||||||||||||||||||||||||
| Friday, 21 August 2009 09:00 | |||||||||||||||||||||||||||||||||||||||||||||||||
 This is not your typical biotech story. This is not a company waiting for a phase three study or an FDA decision in order to become profitable. This is now a commercial story with a company that is being very aggressive in their pursuit of additional revenues and a solid balance sheet. For me, this isn't an extreme trade opportunity. It's an extreme investment reality. After interviewing Hoji Alimi, the CEO and founder of Oculus Innovative Sciences (Nasdaq:OCLS) three days ago, he made it abundantly clear to me that armed with their latest FDA approval, they have moved to the next stage. The "magic" of the product captured the attention of the investment community and speculators moved in. Shares traded as high as $11 in 2007 and in the $4 range as recently as last June.
The techology has been tested on more than 1 million patients world wide and at least 28 clinical studies have been conducted. The results have always been consistent in showing safety and efficacy. Thousands of doctors who use the product on their patients agree. After being vilified by one particular writer for not having the appropriate FDA clearance to legally speak about their claims in the U.S. The company can now speak more openly about the anti-microbial effectiveness of their Microcyn® Skin and Wound Cleanser product. The next product that is coming to the market is Oculus' Microcyn Skin & Wound HydroGel which is a medical insurance reimbursable product. That makes product much easier to adapt from a financial standpoint where hospitals, medical facilities and healthcare providers are concerned. It also means additional and steady revenue streams for the company. Oculus is also currently sampling the new professional Microcyn Skin & Wound HydroGel formulation to U.S. medical professionals. "Hospitals are running a business, so they're looking for technologies that are not only going to protect and treat their patients, but also these technologies have to make sense financially," explains Alimi. "When a product is reimbursable, it means that the government and states are willing to pay for either a portion or the full amount of the treatment. For biotech companies to be able to achieve that status for a product is very important- especially in the U.S. That makes the HydroGel formulation important to us. Not only that, but it also gives us two separate products that can be used by patients and medical professionals... You can clean with the liquid and then you can protect the wound by applying the gel." The products are approved for both the OTC (Over the Counter) and RX (Hospital) markets. The company is in serious discussion with several partners to use their distribution platforms in order to get the product onto shelves all over the U.S., and announcements should follow in the near term. The OTC version of the HydroGel product will be available to consumers beginning October 2009. Until now, most of the company's revenue has come from Mexico, where they move an average of over 35,000 units a month (approximately $5 to $6 million in revenue per year from just sales south of the border). Using the market and usage indication data from that market, the company is preparing plans for expansion into Europe and China as well. That makes an investment in this company quite an interesting proposal. Especially as investors consider the potential revenues which may come from the new additional sales in the U.S., and beyond. And that's a point not missed by Alimi. "Look at the population of China, for example. That's a population ten times the size of Mexico. We have an approval. We have a partnership with the largest drug company in China." In addition to all the products for human use, earlier this year, the company announced that it had entered into a definitive agreement with a strategic partner in the veterinary space., VetCure Inc. VetCure and its affiliates made a $3 million investment in return for the exclusive rights to distribute and sell the company's Vetericyn Wound Care products for animals in the United States All of those efforts were made with a single goal on record. "The company is looking at cash break-even by March of 2010 followed by plans for earnings per share after that," says Alimi. What makes this opportunity really resonate for long term investors is the fact that the product has potential in ophthalmology, dermatology and in upper respiratory applications. Each of those are multi-billion dollar markets and the company is fully aware of that potential. They are looking at raising money as effectively as possible in order to take advantage of those opportunities and have been very open and transparent about their plans with investors. "The newly raised funds aren't going to be used for survival. They are going to be used specifically for the development of additional formulations that can be moved into commercialization." Disclosure: I am now long OCLS BiomedReports is not paid or compensated to report news and developments about publicly traded companies. Full disclosure can be read at the bottom of / About Us / Section Add this page to your favorite Social Bookmarking websites           
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Comments (12)
Kenneth Ho
said:
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... Will this article will be released to the general public? If so, when? Will this be the practice from now whereby biomedreport subscribers get a heads up on new articles before the articles are released to the public? I think that's the way to go. |
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M.E.Garza
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... Yes. The subscribers get breaking information like this first. Then it is released to the general public. |
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Jack
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... what's the time lag between we subscribers and the general public for this kind of info? I am totally 100&#xly; for it.... |
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William Lake
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... This stock is a joke its has been on a steady decline and has used this website to bump its stock price thats unethical today it jumped up to 2.28 on the market open then spent the day selling off. apparently you must have censored my morning comment. which causes me to question the authnenticity of this website. It has continued to fall in an aftermarket sell off, its a dog that can only roll over and play dead. 1. Dawson James does private sale of stock in July 2. August Alimi CEO does option buy of 315,000 shares @ .15-.22 cents per share 3. then sells the 315,000@ $2.22-1.97 per share 4. you send out report of big news 5 Dawson James rates stock as BUY releases Big nation wide press release Claiming its a 4.50 stock 6. Stock goes to $2.67 (I buy at 2.30) then everyone and their brother, sister, aunt and uncle dumps the stock. this dump comes close to equaling the private sale I have not read anything from Thestreet.com but this whole thing stinks as a stock scam Capt Lake PS I am also a biomedreports subscriber and I think you got played or are playing us |
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M.E.Garza
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... William Lake, I think you either suck as a trader or as an investor. My suggestion is that you take your money and put it in a CD somewhere because you may know very little about the market and how commercial opportunities for biotechnology work. The upside potential to this company is much higher than the downside potential, both as a trade and an investment. Check back in about this stock in 30-60 days and call it a bad investment. In the meantime stop your whining. This is a real find and the fact that it closed up after a strong bullish trend leads me to believe that the investing community thinks so too. Oh, and another tip... If you don't like a stock or don't feel it's legit, then don't buy shares or short it. You can make money that way too, you know? |
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M.E.Garza
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... "August Alimi CEO does option buy of 315,000 shares @ .15-.22 cents per share 3. then sells the 315,000@ $2.22-1.97 per share" Sounds like Alimi is a much better investor than you, Lake. Besides that, as was pointed out in another article. These guys trade in on the NASDAQ. It's not some shady OTC stock with no real accounting and transparency. If these guys are playing everyone, then they'll go to jail. Simple as that. eventually they all do. I also agree with the poster above. Don't buy shares if you don't like a stock. No one forced you to buy anything. |
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Kaptain Krunchy
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... Why was this article removed from the subscriber content section? Please let me know. |
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M.E.Garza
said:
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... These articles are released to our subscribers first, but because they contain statements from the company CEOs they must be made public. Please note that these are quotes from the actual CEOs of the companies and we're making them part of the public record as news statements. |
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Kaptain Krunchy
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... Thank you and keep up the good work, you guys have made me some good money since I've joined on. Take Care, Krunchy |
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louis xiv chrispin
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... hi everyone, I'm a new subscribers trying to learn my way around investing and biomedreports i just became a member. what is the best way to used this report to invest in the biomedic industry? |
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M.E.Garza
said:
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... louis, Send me an e-mail and I'll be happy to fill you in. This e-mail address is being protected from spambots. You need JavaScript enabled to view it Kaptain Krunchy... You're very welcome. We love to hear that! |
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Kenneth Ho
said:
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... Do you happen to know the near term catalysts for Oculus? Do u foresee any updates on Oculus soon? Grateful for any info.. |
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