Acura Pharmaceuticals Inc. (NASDAQ:ACUR)

CAPS Rating: 3 out of 5

A pharmaceutical company engaged in research, development and manufacture of innovative Aversion(r) Technology and related product candidates.


Player Avatar zzlangerhans (99.85) Submitted: 12/10/2012 4:39:32 PM : Underperform Start Price: $2.49 ACUR Score: +10.56

When is a non-catalyst a catalyst? When Seeking Alpha says it is, of course. There was never any doubt that Acura would be putting Nexafed on drugstore shelves, the issue has always been whether they will turn anything resembling a profit. The announcement today changes absolutely nothing. OTC cold medicines are a pretty low margin business, and I suspect it takes having a hefty number of them to overcome the costs of doing business in the space. Acura has just one, which will compete with branded pseudoephedrine (yes, it's still easy to buy), generic pseudoephedrine, phenylephrine, antihistamines, non-sedating anti-histamines, combination products, herbal medications, and God knows what else. Nexafed will be priced similarly to branded pseudoephedrine, which means at the top of the tier, and provides no incentive for a buyer over generic pseudoephedrine.

Acura seems to attract a lot of pyramid-minded traders, who love to pile on once the stock gets some upward momentum because there are a lot of greater fools out there. Will they be the same greater fools who rode the share price back down from 2.5 to 1.4 after last month's irrational spike?

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Member Avatar naughtyguy (33.27) Submitted: 12/12/2012 12:05:13 PM
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The major advantage of their product (and incentive for a business to buy this) is that it can't be used to make Meth, as other pseudoephedrine products can. This is from their recent earnings report:

“We hope the availability of Nexafed® empowers pharmacists to impact meth abuse at a local level by stocking and recommending the product,” said Jones. In a recent market research study, 70 percent of chain and independent pharmacists involved in pharmacy stocking decisions said they were likely to stock or recommend stocking Nexafed® in their pharmacies. These pharmacists further indicated a willingness to recommend Nexafed® to over 50 percent of their customers who seek a pharmacist’s advice in need of a single ingredient nasal decongestant like Nexafed®."

After such a rise in stock price, I wouldn't argue that there is a pull back possible. Long term, this product should gain market share quickly.

Member Avatar zzlangerhans (99.85) Submitted: 12/13/2012 11:05:41 AM
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Wow, you cut and pasted your pitch as a reply to my pitch. I totally feel like that merits a response.

Member Avatar naughtyguy (33.27) Submitted: 12/17/2012 12:23:46 PM
Recs: 0

If cutting and pasting a pitch as a reply merits a response, what is your response? Has that never been done before? Saved me time! Sorry if you have a problem with that. I'm not an expert and have no intention of pretending to know a lot. I do like to share some of my thoughts or findings, however. I don't spend much time with Motley Fool and fail to close losing positions as I should. I still enjoy the experience.

I also replied to another poster that TODAY I read in my local paper that there is an effort to remove pseudoephedrine products from being sold over the counter. I suspect that Nextafed will get an exception.

There certainly will be no incentive for meth users to buy Nextafed.
Pseudoephedrine does not dry you out like anti-histamines. I don't have any position in this stock. Do you?

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